U.S. Markets open in 2 hrs 13 mins

Edited Transcript of CANBK.NSE earnings conference call or presentation 11-May-18 1:00pm GMT

Q4 2018 Canara Bank Ltd Earnings Call

Mumbai Jan 23, 2020 (Thomson StreetEvents) -- Edited Transcript of Canara Bank Ltd earnings conference call or presentation Friday, May 11, 2018 at 1:00:00pm GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* P. V. Bharathi

Canara Bank - GM & Executive Director

* Rakesh Kumar Sharma

Canara Bank - MD & CEO

================================================================================

Conference Call Participants

================================================================================

* Anand Laddha

HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer

* Jai Mundhra

Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst

* M. B. Mahesh

Kotak Securities Limited, Research Division - Senior Analyst

* Roshan Chutkey

ICICI Prudential Asset Management Company Limited - Associate VP and Analyst

* Sangameshwar Iyer

Subhkam Ventures - VP of Investments

================================================================================

Presentation

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Welcome to Canara Bank Q4 FY 2018 Earnings call. We have with us, Mr. Rakesh Sharma, MD and CEO of the bank, accompanied by senior management team. Now I request Mr. Sharma to take us through result highlights, post which we'll open the call for Q&A. Over to you, sir.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [2]

--------------------------------------------------------------------------------

Thank you, Mr. (inaudible), good evening. Good evening all the participants. I have with me Madam Bharathi, the Executive Director; Mr. Matam Rao and Mr. (inaudible), both Executive Directors and DGMs.

So I'll make a brief presentation about the results of Canara Bank, which we announced today. Before starting, I'd like to just mention about this background in which [you know] the results are there because the bank has done well in various financial parameters but, of course, there was a loss of 4,860 crore in the quarter. So the (inaudible) will have to see when was this, you know, this [bonus] had increased during the year from 6.566 as of 31 March 2017. It had increased to 7.540 as of 31 March '18. So as a result of which, the treasury income was, of course, less as compared to previous year so we could not earn more income. And second, of course, we had to provide M to M losses for this increase in yield. Second, the major development which took place earlier, this SDR scheme model, (inaudible) and quantify (inaudible) and as for the revised guidelines issued by RBI on 12 February, the -- all these schemes will discontinue. Now some of them, of course, were already in the process of either SDR or S4A. And normally, as you know, the process takes 6 to 18 months of time since the process was not complete. But as for the revised guidelines, we had to classify these accounts as NPA and as a result, the slippages were more during the current quarter. Details I'll give you in the process.

The other thing, which we have to keep in mind is that RBIs had given some differentiation for making progress. One was for this M to M losses, as I mentioned earlier. This (inaudible) losses during the next 4 quarters, we can carry it forward. Second was this transition was in NCLT cases, list 1 and list 2, they said that instead of making 50% provision, we can make 40% or provincial provision, of course, whichever is higher. So that dispensation was also given.

Then third in some reports we are, of course, classified as NPL but although not classified as fraud, but there, we could have made a provision in 4 quarters, but we decided to make 100% provision. So the net effect of all these 3 cases, RBI interim losses and CLT in case of additional provision and some accounts NPL where we have made 100% provision. This net effect is 2,031 crore. So this we could help part of this 2,031 crore, we could help carry the forward during the subsequent quarters. But as a matter of conservative management practice and better to clean the balance sheet, we decided not to carry forward, and entire provision has been met during the current quarter. So as a result, the provision on NPS has increased substantially. Second was this NCLT one more which I was mentioning [before], as a result, the overall provision on the list 1 and list 2 total NCLT cases where our exposure in both equal together is around INR 15,000 crores approximately. And as of now, 31 March, because we have made a full provision as per the RBI original guideline, as of now, we hold 62% average provision in all these accounts. And as you would've seen in some of the cases which are resolution, the [haircut] is in range of 30% to 35% average, or maybe in some cases maximum 40%. One or 2 cases only, haircut is more. So average haircut will be not more than 40% as we are carrying 62% provision. So that means we will not be required to make any additional provision (inaudible) and you know right back of provisions. So in this background, I'd like to mention about the performance. The business parameters, if you see the global business, first time it has crossed 9 lakh crore business mark and there was a growth of 8.26%. Deposits have grown by 5.96% and advances by 11.61%. If you see the major growth in advances which has happened. Agriculture, 13%; MSME, 10%; and retail, although it is mixed because it includes direct and indirect, but direct housing, we have grown by 16%. Vehicle, we have grown by 31%. So that -- and then the corporate advances, although we have grown but grown conservatively with good quality over 1.53%. So the growth factor in deposits, our CASA growth has been quite robust, 11.54%. And the CASA ratio, which used to be earlier at about 3 years back, it used to 26%. Now it has reached 34.28% as of 31 March 2018. So that way, the deposit growth has been quite selective and good.

Now coming to the profitability parameters. The gross profit for the financial year '18 has increased by 7.1% from INR 8,914 crore to INR 9,548 crore. And fourth quarter, of course, the gross profit was INR 1,765 crore. Now if you'll see the last year, we had some extraordinary income of INR 704 crore in Q4 last year because of the low power shares in (inaudible) home, but this year, of course, first quarter, there was some extraordinary income (inaudible) that was only 429. But besides that, we have grown by 7.1% in operating profit. And net interest income during the quarter, it has improved, grown by 10.3%. And if you see the full year, it has grown by 23%. So there has been good growth in net interest income. Noninterest income, as you see, there has been some reduction of YoY. The main reason, as I said earlier, was because that the treasury income has -- we could not book good income because of the yield had increased from 6.62 to 7.40 but if we see the noncore, noninterest income excluding this treasury income, it has increased -- improved growth by almost 15%. So the core noninterest income has grown in -- by 15%. And so the -- this is our profitability parameter. And as a result of this, because of our good selection of advances and selective growth, the efficiency parameters have also improved. The cost of deposits have come down from 6.25 to 5.30. The net interest margin basically in -- despite the increase in NPS, the global net interest margin from 2.23%, it has increased to 2.42%. And the domestic net interest margin has increased from 2.39% to 2.65%. Cost of income -- cost to income ratio, some marginal increase was there from 48.85% last year to 50%. Marginally, it has increased, I agree. But the main reason is because of this reduced income in this treasury. But going forward, our target will be to keep it below 48% as last time also I had mentioned.

So the asset parameters have also improved. If you see the asset quality, of course, the slippages during the current quarter, as I had mentioned (inaudible), it was around INR 13,242 crore. Out of that, 8,181 has come mainly from because of this revised guideline. And of course, during the current third quarter spending (inaudible) down 69. There was one failure of SDR 8 25 crore. And of Agriculture, because of some increase in (inaudible) slippages are slightly high as compared to the previous quarters. But other than that, if you exclude this extraordinary slippages, the normal slippages are around INR 2,500 crores. So going forward, our -- like last time also I had mentioned, the slippages will not increase. 2,500 rather, we'd like to restrict within INR 2,000 crore in the financial year '18, '19. So the slippages happens. As a result, the gross NPA has increased 11.84, and net NPA has also increased to 7.48. But if you see the provision, we have adequately provided for the NPAs. Despite the effect of this new accretion in NPA, we'll have a provision of only 20% -- 15% [as standard] (inaudible). But our provision coverage ratio has improved from 55.6% last year to 58.06% current year. And during the year, the cash recoveries were also good. In fact, as you'll see, the cash recoveries for last year, it was INR 4,162 crores. This year, it was (inaudible) INR [458] crores. And return of accounts also, recovery in return of accounts last year, it was 705. This year, 1,625. So basically, we have been able to improve the recovery mechanism at the [organization] and we have increased mainly because of this revised guideline. And we thought we'd since the guidelines out there, better to clean of everything. I think more or less, we have right now you will see, the SMA-2, which will be more than INR 5 crore SMA-2 if you'll see, as of 31 December '17, it was INR 14,879 crore, which has come down to INR 2,924 crore. So there is a reduction of almost 12,000. Because most of it is (inaudible) INR 2,934 crores, whatever is there, we have checked this (inaudible) not a stressed account and we don't expect slippage from this portfolio. So that way, I think the onetime slippages were there, but it will not be repeated during next year because proper cleaning exercise has been done.

Now PCR, capital adequacy. The government has infused capital of INR 4,855 crore last year. So out of the losses were there, 400 crore, 220 crore. But despite the 2 results, we have been able to improve our capital adequacy ratio. If you see, from 12.86 to 13.22. Even the (inaudible) from 9.77, it has increased to 10.3. And CET has also increased from 8.92 to 9.5. Two reasons I'll mention. One, of course, the part although some losses are there but capital infusion by the government. Second, we have been able to improve the quality of our portfolio. If you see the risk weighted assets to growth advances in our presentation also we have mentioned as of March '17, it was 95.4%. But March '18, it has come down to 87.74%, so that means we are going towards more quality advances and less risk weighted so that way risk weighted has been reduced, which has also helped in improving the capital ratio.

As far as current year plan is concerned, this -- we already have AGM approval for raising capital for INR 4,500 crore. Now although the loss are there, but we have done the cleaning exercise. We have not carried forward any provision for the next year. Everything has been accounted for now. So we propose to approach the investors for raising capital. Apart from that, government may also (inaudible) and when the government comes out with capital in reinvestment plan. And some monetization also is under process (inaudible) but that may not (inaudible).

Going forward, this last I will like to mention, this strategy part. One is this advances we propose to grow by around 10% to 12% as in the current year mainly in retail, more than 20%; MSME and Agriculture, around 10%. Corporate, we propose to grow about 7% to 8%. And then the strategy will be, one is cost optimization. Cost optimization, when I said 2 parts. One, improving the CASA ratio so that we can reduce our cost of deposit and second, controlling the operating expenditure so we can improve our actions in parameters. So we are working on that. So cost optimization will be the major factor. Then, quality of advances, as we have already improved our total advances, the risk-weighted assets to total advances ratio, it will continue further. And recoveries and optimizaton of all those cases, which are referred to NCLT, our NCLT are not referred either by restructuring or recovery, we will affect the resolution of this. And capital, of course, will be strengthening.

So with that, I think the presentation, I'll hand it over to Mr. (inaudible), so they can continue with the questions. So thank you very much.

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

(Operator Instructions) The first question is from the line of [Ravigand] (inaudible) from MK Global.

--------------------------------------------------------------------------------

Unidentified Analyst, [2]

--------------------------------------------------------------------------------

Just a couple of questions. One is on your restructured book, the SDR is 4 and 5 25. If you could just confirm how the movement has been quarter-on-quarter because I think there's a composite number on the restructured assets, but the break-up I did not locate -- was not able to locate in the PPT.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [3]

--------------------------------------------------------------------------------

One is, of course, I would like to mention that although the NPAs have increased, but the total stress effect, I will give you the number, but the stress effect and gross NPA plus [spending] restructured, it was 12.50 as of 31 March '17 which has gone only marginally to 12.76. So basically like from restructured assets mainly, it has moved to NPA. Now the numbers, of course, my friend, Mr. (inaudible) will give.

--------------------------------------------------------------------------------

Unidentified Company Representative, [4]

--------------------------------------------------------------------------------

Actually, quarter-to-quarter on quarter, if we see, total stress effect, it comes to around 12.52 at March '17. Q3 December '17, we were at 12.19 and March '18 it is 12.77.

--------------------------------------------------------------------------------

Unidentified Analyst, [5]

--------------------------------------------------------------------------------

Give me the ratios.

--------------------------------------------------------------------------------

Unidentified Company Representative, [6]

--------------------------------------------------------------------------------

It include NPA plus restructured standard as well as - yeah restructured standard.

--------------------------------------------------------------------------------

Unidentified Analyst, [7]

--------------------------------------------------------------------------------

So within that, I just wanted what is the composition in terms of -- so I mean is it fair to assume that the entire SDR is now NPA because I think in the last quarter, you had said that INR 5,171 crore was SDR and INR 2,300 crore was S4A.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [8]

--------------------------------------------------------------------------------

Same 8,000 has become now (inaudible) I mean, plus or minus 10% (inaudible) are only 8,000 to NPA because of this February 12 guideline.

--------------------------------------------------------------------------------

Unidentified Analyst, [9]

--------------------------------------------------------------------------------

Okay. And what is the status on the 5:25? Heard 6,800-odd crore of 5:25?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [10]

--------------------------------------------------------------------------------

5:25 implemented discontinuing. That is our own INR 4,982 crore.

--------------------------------------------------------------------------------

Unidentified Analyst, [11]

--------------------------------------------------------------------------------

Okay. So there has been some slippages from this then?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [12]

--------------------------------------------------------------------------------

Yes. Now in that, the NPA is around INR 2,400.

--------------------------------------------------------------------------------

Unidentified Analyst, [13]

--------------------------------------------------------------------------------

Okay. So can we have some more color on the 5:25? Because I mean a few large corporate banks have announced results. Now if we compare across, I think, for some banks, the slippage from 5:25, the mortality in 5:25 has been on the lower side whereas for you, 1/3 of 5:25 has slipped. So what -- is there any specific sector, specific color in this? Is it the road? Or is it -- I mean, if I recall, there is power in this. Where would the slippage have happened?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [14]

--------------------------------------------------------------------------------

Most of the majorities from power sector. I'll give the number also. Mainly during the quarter, power of INR 5,200 crore has slipped. Telecom, it is INR 2,182 crore, around INR 2,200; and textile, INR 950 crore; and construction, INR 7797 crore. So mainly 9,139 is these 4 sectors remaining, of course, the miscellaneous sector. So mainly, it's (inaudible) I think that is the resolution plan all the bankers we had everything, new scheme of things we are working on the sustainable portion. And then whether we will go for (inaudible) so that process has already started.

--------------------------------------------------------------------------------

Unidentified Analyst, [15]

--------------------------------------------------------------------------------

Okay. And so the last question on the net interest margins, they're holding up quite well. And you had a very high slippage quarter so one would have expected interest reversals to have hit domestic names. Nothing seems to have happened in that manner. So I mean, what's the outlook? Like, what is exactly contributing to your stable NIMs?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [16]

--------------------------------------------------------------------------------

(inaudible) You should not expect much interest rates. But despite, of course, we had to reverse some interest income, not that they are not reversed. But mainly, we have been able to reduce our cost of deposit substantially. Here, our CASA used to be 26%. Now it is 34%. And this -- in some accounts, of course, the interest recovery also happening so as a result our NIM has improve. And I'm expecting that, of course, during the current year, some of the resolutions will happen. So during the current year may not improve substantially but still, I am expecting that by March '19, it should be 2.6 to 2.65 range.

--------------------------------------------------------------------------------

Operator [17]

--------------------------------------------------------------------------------

Next question is from the line of Kunal Shah from Edelweiss Securities.

--------------------------------------------------------------------------------

Unidentified Analyst, [18]

--------------------------------------------------------------------------------

This is [Prakar]. A couple of questions. First, under the new RBI scheme where you have to report your accounts, which is one-day delinquent to (inaudible) how many accounts have you reported this time?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [19]

--------------------------------------------------------------------------------

Actually, the question is around INR 8,000 crores, 24 accounts.

--------------------------------------------------------------------------------

Unidentified Analyst, [20]

--------------------------------------------------------------------------------

24 accounts of INR 8,000-odd crores, which are if not resolved over the next 6 months will probably go to (inaudible)

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [21]

--------------------------------------------------------------------------------

It is actually, INR 8,000 crores where under that RBI scheme, which are SDR asset classification they were enjoying

--------------------------------------------------------------------------------

Unidentified Analyst, [22]

--------------------------------------------------------------------------------

I was asking about this one day you already put the account which has to be reported to RBA.

--------------------------------------------------------------------------------

Unidentified Company Representative, [23]

--------------------------------------------------------------------------------

One-day default for the purpose refers to NCLT.

--------------------------------------------------------------------------------

Unidentified Analyst, [24]

--------------------------------------------------------------------------------

Yes, so what is that count for us? How many accounts and what is the count for that you have reported?

--------------------------------------------------------------------------------

Unidentified Company Representative, [25]

--------------------------------------------------------------------------------

Actually, the reason is (inaudible) we already 6 months time to build in-house resolution. So if we fail, then go for references because these are very minimal (inaudible) and this is applicable to INR 2,000 crores and above.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [26]

--------------------------------------------------------------------------------

So that's the data I understand. So have you reported anything to RBI because that part of...

--------------------------------------------------------------------------------

Unidentified Company Representative, [27]

--------------------------------------------------------------------------------

No, no. Not yet, not yet. (inaudible) few will be cleared. So no bigger (inaudible) are there. Very minimal amount.

--------------------------------------------------------------------------------

Unidentified Company Representative, [28]

--------------------------------------------------------------------------------

(inaudible) part of the solution because it can be resolved either way even without (inaudible) resolution or change of management we are limited (inaudible)

--------------------------------------------------------------------------------

Unidentified Analyst, [29]

--------------------------------------------------------------------------------

So if we have initiated recovery upon these accounts, there must be some accounts that we would have been reported to RBI.

--------------------------------------------------------------------------------

Unidentified Company Representative, [30]

--------------------------------------------------------------------------------

Roughly around 4 accounts are there in total 1,000 crores, but these are temporary holders. It is not chronicle holder.

--------------------------------------------------------------------------------

Unidentified Company Representative, [31]

--------------------------------------------------------------------------------

4 accounts (inaudible).

--------------------------------------------------------------------------------

Unidentified Analyst, [32]

--------------------------------------------------------------------------------

Okay. And sir, when you look at your MSME portfolio, the rate of slippages is still over 10%. Your thoughts on the same?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [33]

--------------------------------------------------------------------------------

MSME, around INR 8,139 crores total (inaudible) although it comes from 9.90%.

--------------------------------------------------------------------------------

Unidentified Analyst, [34]

--------------------------------------------------------------------------------

So if you look at the rate which is still the delinquency run rate which is still 10%, is there any change in directing that you have done some actions that you would have taken to rectify it or...

--------------------------------------------------------------------------------

Unidentified Company Representative, [35]

--------------------------------------------------------------------------------

We (inaudible) already put sanctions on those, we already making little -- announce the level of appraisals, announce the level of conditions, safety measures we are taking with our efforts for (inaudible) The quality of the provisions in the last 2 quarters, I should say, is already announced because these are already -- they are not able to withstand any ups-and-downs from the industry, smaller ones also, small gain in the macro level ROA (inaudible) factor, it will fit with us. We already announced our quality of the appraisal, and we are very careful in taking any pressure for this. Existing of course by and large, we are taking pressure.

--------------------------------------------------------------------------------

Unidentified Analyst, [36]

--------------------------------------------------------------------------------

Any expectation of where should it settle in the next 3, 4 years or...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [37]

--------------------------------------------------------------------------------

The recent prescriptive rate have not gone up to what rate we are taking have not gone up. We have not come across any big chunk of (inaudible) and all.

--------------------------------------------------------------------------------

Unidentified Analyst, [38]

--------------------------------------------------------------------------------

And sir, last question from my side. If you look at your NCLT cases, you have overall coverage of around 62% that you mentioned. And now we are seeing that you have steel accounts will be ideally recovered first where the haircut probably would be lower. So will we wait for overall recovery across these sectors to write back or probably will do it on a case to case basis and that write back will be as and when

--------------------------------------------------------------------------------

Unidentified Company Representative, [39]

--------------------------------------------------------------------------------

It will go by case because whenever any account, suppose one account is resolved. So whatever (inaudible)detail we are maintaining account wise how much provision is there. So once the account is settled, that account will be cleaned off and then the second account will take.

--------------------------------------------------------------------------------

Unidentified Analyst, [40]

--------------------------------------------------------------------------------

So there will be 2 accounts wherein your coverage will be lower but the haircut will be deliberately higher.

--------------------------------------------------------------------------------

Unidentified Company Representative, [41]

--------------------------------------------------------------------------------

We have very clear guidelines of their RBIs, which speak how much provision and which revenue provision process totally guided by IBC and (inaudible)

--------------------------------------------------------------------------------

P. V. Bharathi, Canara Bank - GM & Executive Director [42]

--------------------------------------------------------------------------------

Due to original condition, we have already made a 50% provision. And now we (inaudible)

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [43]

--------------------------------------------------------------------------------

This provision guidance. This is minimum 50% provision is there or (inaudible) whichever is higher. But on an average, we are holding 62%.

--------------------------------------------------------------------------------

P. V. Bharathi, Canara Bank - GM & Executive Director [44]

--------------------------------------------------------------------------------

62% for the entire (inaudible).

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [45]

--------------------------------------------------------------------------------

So I appreciate your question. In maybe 1 or 2 accounts, it will happen that haircut is more i.e. I know one account where the haircut will be more. But maybe, we'll have to provide slightly more. But at the same time, in many other cases, (inaudible) impact rather on an average, haircut will be in the range of 35% to 40% where we are only 62%. If 1 or 2 accounts, we have to provide more. But other accounts, we'll be writing back more. So net effect will be positive only.

--------------------------------------------------------------------------------

Operator [46]

--------------------------------------------------------------------------------

Next question is from Jai Mundhra from Batlivala & Karani Securities.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [47]

--------------------------------------------------------------------------------

So first, on the interest income and net interest income. So if I see the quarter-on-quarter -- in this quarter-on-quarter, the net interest income has declined by around 19% from INR 3,680 crores to INR 2,980 crores, but the margins are stable. And even if I see the yields have slightly declined and cost of funds is also more or less stable. So what -- so NII has dropped significantly. So what explains this stable margins?

--------------------------------------------------------------------------------

P. V. Bharathi, Canara Bank - GM & Executive Director [48]

--------------------------------------------------------------------------------

Cost of deposits have come down.

--------------------------------------------------------------------------------

Unidentified Company Representative, [49]

--------------------------------------------------------------------------------

[indiscernible quarter-on-quarter over last quarter. We had since this is the last quarter for provision as well but there was a one-off income during last quarter (inaudible) because net interest income is telling about Q3 to Q4. But if you see Q1 to Q3 -- Q1 to Q2, there is an increase. Q2 to Q3, there is an increase. Q3 to Q4, only variable. That is mainly because there was a one-off (inaudible) another [INR 30 crore] (inaudible) interest from Internet refund last quarter (inaudible) minus that, the interest income.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [50]

--------------------------------------------------------------------------------

But now, my question is why you did this when it follows, how NIM has improved?

--------------------------------------------------------------------------------

Unidentified Company Representative, [51]

--------------------------------------------------------------------------------

Stable NIM we have this quarter is stable net interest income. And quarter-on-quarter, full year if you see from INR 9,007 crore and INR 9,872 during '16, '17, it has increased to INR 12,163 crore. In fact, there was an increase of 23%.

--------------------------------------------------------------------------------

Unidentified Company Representative, [52]

--------------------------------------------------------------------------------

23% full year.

--------------------------------------------------------------------------------

Unidentified Company Representative, [53]

--------------------------------------------------------------------------------

So NIM has improved full year.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [54]

--------------------------------------------------------------------------------

And net interest income on growth, full year, if you look at last year also the previous year growth, this year '17, '18 the growth is little more than the previous year 23.2% so in that -- maybe part of that, that is a one-off but (inaudible) on that.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [55]

--------------------------------------------------------------------------------

If you go to Slide 21, so yields on advances have fallen by 9- basis point, cost of deposits have increased by 1- basis point and NII has declined by about 18% quarter-on-quarter. Still, the margin is stable.

--------------------------------------------------------------------------------

Unidentified Company Representative, [56]

--------------------------------------------------------------------------------

I'll tell you that. If you look at our overall growth sector, the (inaudible) 5.96%. In that, overall growth was only 3.23 percentage. My growth was mainly the growth was coming from CASA because the CASA share has increased. That is one thing. Whereas in that my other growth was 11.6% so the growth in advance and growth in deposit, when you compare, I have more advances because (inaudible) average (inaudible) you have more advances, which is earning me interest income. That is why this is going to be stable eventually. So it is by way not only increase in, yes, you are right that deposit, cost of deposit has declined by 65- basis points, and yield on advances has declined by 87- basis points. But this is only the one way, but the composition, you showed me, it improved. And CASA has been improved because of this total value (inaudible).

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [57]

--------------------------------------------------------------------------------

So no issues there. Secondly on asset quality, so can you just give the number for, let's say, what is the residual SDR and S4A? And 5:25, I believe you mentioned that we have now just -- the number 5:25 number you have given, which is INR 4,982 crores, which is standard only, right?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [58]

--------------------------------------------------------------------------------

Yes, SDR and S4, it's around...

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [59]

--------------------------------------------------------------------------------

Standard only.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [60]

--------------------------------------------------------------------------------

Where (inaudible) implemented, we measured February '18. I mean, between (inaudible) because there was a (inaudible) that said that if it is not implemented, you -- that whatever asset class benefit was extended it is withdrawn from February. Now which were implemented, that counts...

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [61]

--------------------------------------------------------------------------------

No, no, sir, I'm asking what is the standard as of now? So standard as of 31 March?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [62]

--------------------------------------------------------------------------------

S4, 1-1-8-1.

--------------------------------------------------------------------------------

Unidentified Company Representative, [63]

--------------------------------------------------------------------------------

INR 1,081 crores.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [64]

--------------------------------------------------------------------------------

1,081?

--------------------------------------------------------------------------------

Unidentified Company Representative, [65]

--------------------------------------------------------------------------------

181.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [66]

--------------------------------------------------------------------------------

Sure.

--------------------------------------------------------------------------------

Unidentified Company Representative, [67]

--------------------------------------------------------------------------------

So (inaudible) INR 2,573 crores.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [68]

--------------------------------------------------------------------------------

5:25...

--------------------------------------------------------------------------------

Unidentified Company Representative, [69]

--------------------------------------------------------------------------------

INR 2,573 crores. (inaudible)

--------------------------------------------------------------------------------

Unidentified Company Representative, [70]

--------------------------------------------------------------------------------

5,000; 6,000; 6,200. 6,200 in total.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [71]

--------------------------------------------------------------------------------

Okay. So 1,185 is S4A and total is 5,600?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [72]

--------------------------------------------------------------------------------

No, INR 1,181 crores is the S4. It's a (inaudible) standard, implemented (inaudible).

--------------------------------------------------------------------------------

Unidentified Company Representative, [73]

--------------------------------------------------------------------------------

5:25...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [74]

--------------------------------------------------------------------------------

5:25 -- INR 2,573 crores, standard.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [75]

--------------------------------------------------------------------------------

INR 2,573 crores?

--------------------------------------------------------------------------------

Unidentified Company Representative, [76]

--------------------------------------------------------------------------------

Refinancings standard, INR 2,016 crores.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [77]

--------------------------------------------------------------------------------

And SDR is INR 2,050 crores?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [78]

--------------------------------------------------------------------------------

So SDR is not there.

--------------------------------------------------------------------------------

Unidentified Company Representative, [79]

--------------------------------------------------------------------------------

Not there.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [80]

--------------------------------------------------------------------------------

SDR is 0.

--------------------------------------------------------------------------------

Unidentified Company Representative, [81]

--------------------------------------------------------------------------------

SDR, yes.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [82]

--------------------------------------------------------------------------------

And refinance, they are under SDR -- sorry, refinance, or their scheme, that is implemented to cases, INR 2,016 crores standard.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [83]

--------------------------------------------------------------------------------

Sorry, sir, what is this 2-0-1-0?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [84]

--------------------------------------------------------------------------------

INR 2,016 crores, that is refinance. Under refinance, we can refinance -- at that time, one guideline was there, we can refinance the existing loans with a softer rate of interest, with longer repayment period. So that INR 2,016 crores, that is -- some of that came through 5:25.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [85]

--------------------------------------------------------------------------------

Okay. And the restructured that we have shown, standard restructured, INR 3,700 crores roughly, does that have -- does that book have any overlap with this S4A book?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [86]

--------------------------------------------------------------------------------

These are all, a majority (inaudible) restructured cases.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [87]

--------------------------------------------------------------------------------

Sure. And sir, just on power sector, so we believe we have given our exposure to total power sector. And within that, we have given exposure to SEB. Is there any other power sovereign entity? So what is the private power exposure, sir?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [88]

--------------------------------------------------------------------------------

Private exposure is INR 18,794 crores.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [89]

--------------------------------------------------------------------------------

Okay. And what is the NPA in that book, sir, INR 18,700 crores?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [90]

--------------------------------------------------------------------------------

Out of that, NPAs reached...

--------------------------------------------------------------------------------

Unidentified Company Representative, [91]

--------------------------------------------------------------------------------

Private sector.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [92]

--------------------------------------------------------------------------------

NPAs not (inaudible) -- private sector.

--------------------------------------------------------------------------------

Unidentified Company Representative, [93]

--------------------------------------------------------------------------------

Private sector. Government sector, nothing -- it's [INR 1 lakh crores.]

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [94]

--------------------------------------------------------------------------------

Government sector, there is not much there, only [INR 1 lakh crores] on recently.

--------------------------------------------------------------------------------

Unidentified Company Representative, [95]

--------------------------------------------------------------------------------

(inaudible) talking about the government. (inaudible).

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [96]

--------------------------------------------------------------------------------

I told you 620 is the total NPA in the power sector. That is including private and (inaudible) power sector as a whole.

--------------------------------------------------------------------------------

Unidentified Company Representative, [97]

--------------------------------------------------------------------------------

Here you see (inaudible).

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [98]

--------------------------------------------------------------------------------

Sorry, sir, I could not hear it. What is the gross NPA there, sir?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [99]

--------------------------------------------------------------------------------

Out of total power sector of [INR 35,000 crores] there, the NPA is INR 5,203 crores.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [100]

--------------------------------------------------------------------------------

Okay. And sir, just last question, if I may ask, the SMA-2 number that you have given, that is more than INR 5 crores. But if you can include below INR 5 crores numbers also, that would be very helpful, if you have that ready.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [101]

--------------------------------------------------------------------------------

Five -- I mean, less than INR 5 crores?

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [102]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

Unidentified Company Representative, [103]

--------------------------------------------------------------------------------

Less than INR 5 crores. (inaudible). I have INR 1 crores to INR 5 crores, 1,490 -- INR 1,490 crores.

--------------------------------------------------------------------------------

Unidentified Company Representative, [104]

--------------------------------------------------------------------------------

December 2 is [14,119]. As of December.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [105]

--------------------------------------------------------------------------------

Yes, that was in December figure.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [106]

--------------------------------------------------------------------------------

No, I have the -- INR 1 crores to INR 5 crores is there, that is the [INR 1,490 crores] only.

--------------------------------------------------------------------------------

Jai Mundhra, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [107]

--------------------------------------------------------------------------------

INR 1,490 crores, right?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [108]

--------------------------------------------------------------------------------

Yes, yes.

--------------------------------------------------------------------------------

Operator [109]

--------------------------------------------------------------------------------

Next question is from the line of Anand Laddha from HDFC Mutual Funds.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [110]

--------------------------------------------------------------------------------

Sir, if you can again, regarding power sector, of the private positive exposure of INR 18,790 crores, how much has been structured to NPA? How much has been restructured under 5:25, or...?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [111]

--------------------------------------------------------------------------------

Restructured, 3-3-1-5, power sector.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [112]

--------------------------------------------------------------------------------

3-3-1-5, okay.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [113]

--------------------------------------------------------------------------------

There is no telecommunications restructure [accomplished out] there (inaudible).

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [114]

--------------------------------------------------------------------------------

Of the power, you said INR 3,315 crores is the standard restructure of the INR 18,790 crores of power exposure?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [115]

--------------------------------------------------------------------------------

Yes, yes.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [116]

--------------------------------------------------------------------------------

And INR 5,200 crores has slipped into NPA?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [117]

--------------------------------------------------------------------------------

Yes, yes.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [118]

--------------------------------------------------------------------------------

Okay. And the balance, INR 10,000 crores, so are they performing well? So they're not part of SMA-2 as well?

--------------------------------------------------------------------------------

Unidentified Company Representative, [119]

--------------------------------------------------------------------------------

Those are -- I mean, they're public sector only, many are -- generation companies out there.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [120]

--------------------------------------------------------------------------------

Okay. Sir, of the slippages of INR 13,000 crores this quarter, how much was from power sector?

--------------------------------------------------------------------------------

Unidentified Company Representative, [121]

--------------------------------------------------------------------------------

Pardon me?

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [122]

--------------------------------------------------------------------------------

Of the slippages of INR 13,000 crores this quarter, how much was from power sector?

--------------------------------------------------------------------------------

Unidentified Company Representative, [123]

--------------------------------------------------------------------------------

Power sector was INR 5,200 crores.

--------------------------------------------------------------------------------

Unidentified Company Representative, [124]

--------------------------------------------------------------------------------

INR 5,200 crores.

--------------------------------------------------------------------------------

Unidentified Company Representative, [125]

--------------------------------------------------------------------------------

INR 5,200 crores.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [126]

--------------------------------------------------------------------------------

Okay. Sir, you also mentioned one account in the gem and jewelry sector, which has become NPA quarter. What was the exposure to that account, sir?

--------------------------------------------------------------------------------

Unidentified Company Representative, [127]

--------------------------------------------------------------------------------

350.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [128]

--------------------------------------------------------------------------------

And we have 100% provided this account?

--------------------------------------------------------------------------------

Unidentified Company Representative, [129]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [130]

--------------------------------------------------------------------------------

Okay. Have you made any provision towards the age provision this quarter, sir?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [131]

--------------------------------------------------------------------------------

Yes, we have made -- we have made -- now you know that these discussions are going on in the European IFA. It's certainly about 2 percentage increase in the [rate here]. But as a prudential measure, we have provided a 10% increase. So until such time these discussions have happened, up to the (inaudible) we don't have to provide anything. So for this quarter, we have provided INR 90 crores and totally so far from November, we have provided INR 150 crores. So Anand, actually, as I said, nothing we have carried forward, rather than 2% being offered by [IFA] we have provided 10% and for wage revision also. So I don't want to carry forward anything now. But it was (inaudible) everything provided for.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [132]

--------------------------------------------------------------------------------

And on the gratuity, sir, how much you could have provided because of the increase in ceiling?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [133]

--------------------------------------------------------------------------------

The last year, what we had provided for the gratuity was INR 146 crores. Against this second (inaudible) provide that this year, INR 308 crores.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [134]

--------------------------------------------------------------------------------

So almost INR 150 crores is additional you have provided?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [135]

--------------------------------------------------------------------------------

INR 162 crores in addition I have provided. Then also, I could have taken some benefit of that but we thought as prudential measure, we provide everything fully.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [136]

--------------------------------------------------------------------------------

Right, sir. And sir, if I look at the other operating cost this quarter, I see a very sharp jump. Is there any one-off in that, sir?

--------------------------------------------------------------------------------

Unidentified Company Representative, [137]

--------------------------------------------------------------------------------

One is, of course, there was additional depreciation. (inaudible).

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [138]

--------------------------------------------------------------------------------

See, you appreciate there was a change in the accounting standard. Then effective from [1/4] 2017, were on the restructured assets-- I mean, revalued assets, the depreciation has to be debited to P&L account. Earlier, it was on the revalued portion that depreciation was debited in revaluation reserve. But as per the revised accounting standard, it has been debited in the P&L account. That amount comes to INR 731 crores which are debited here.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [139]

--------------------------------------------------------------------------------

So the full amount was debited this quarter only?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [140]

--------------------------------------------------------------------------------

Yes, yes, yes. (inaudible) On the cost of reputation, I will say that everything, the depreciation, wage revision and gratuity, everything we have provided. So not carried forward anything.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [141]

--------------------------------------------------------------------------------

Sir, on the treasury side, if you can give some color, like how much excess SLR you are having, what is the modified duration we are getting?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [142]

--------------------------------------------------------------------------------

This modified duration, last time, it was 5.10, okay? So we have now come down to, because now we have started improving that portfolio also, it has come down to 4.99 modified duration. And yield was, of course, was 7.63. And the SLR is 82%; and non-SLR, 18%.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [143]

--------------------------------------------------------------------------------

How much excess SLR we'll be having over the regulatory, sir? The regulation is 19.5%, so how much excess you will be holding, sir?

--------------------------------------------------------------------------------

Unidentified Company Representative, [144]

--------------------------------------------------------------------------------

Around 5 percentage.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [145]

--------------------------------------------------------------------------------

Now SLR also, we are -- earlier, we used to have 10%, 11% excess SLR. And also, we are now, (inaudible).

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [146]

--------------------------------------------------------------------------------

Okay. And sir, until what yield of the portfolio is now protected, sir?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [147]

--------------------------------------------------------------------------------

(inaudible) I think he was telling up to 7.7 is...

--------------------------------------------------------------------------------

Unidentified Company Representative, [148]

--------------------------------------------------------------------------------

Yes, 7.7 is...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [149]

--------------------------------------------------------------------------------

Our GM President is not here, but I'll tell you later. But today, I was discussing with him, he said that so while we are protected but I will check up and confirm to you.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [150]

--------------------------------------------------------------------------------

Okay. And sir, if you can give some guidance on credit costs for next year and ROA target for next year?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [151]

--------------------------------------------------------------------------------

Okay. If you see the credit cost for the, like, last year 2016, '17, my credit cost was 2.17%. So this year, because of this, the revised RBI guidelines and the fully providing for everything and (inaudible) providing 62% and the PCR also improved from 55 to 58. All due to all these factors, my credit cost this year has increased to 3.9. But going forward, because now we have...

--------------------------------------------------------------------------------

Unidentified Company Representative, [152]

--------------------------------------------------------------------------------

3.59%.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [153]

--------------------------------------------------------------------------------

3.59%. So now because we don't have any carried forward item, so my -- they will be to [restricted] below 1.25%. Because now even slippages also, if you see, more or less whatever wants to slip has slipped. So now there will be normal slippages. That way, I think we'll be able to control the credit cost within 1.25%. That is our target.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [154]

--------------------------------------------------------------------------------

Okay. And this 1.25% of our expectation includes even the aging provision which you have to make next year?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [155]

--------------------------------------------------------------------------------

The provision also, more or less, because mostly has been provided for. Only this, that whatever has slipped during this current quarter, there this aging provision will mainly come. But in those cases, I think by the time this aging provision comes, some resolution should happen because these are all big cases. So -- but still, I think we'll be able to cover within that.

--------------------------------------------------------------------------------

Unidentified Company Representative, [156]

--------------------------------------------------------------------------------

(inaudible) It's always (inaudible) accounts measured restructured account (inaudible) with the aging provisions have been made.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [157]

--------------------------------------------------------------------------------

But some -- the aging provision will come, but I think that we will be able to take care within this 1%, 2%.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [158]

--------------------------------------------------------------------------------

So our standard restructured book is still INR 3,500 crores (inaudible). What could be the large major factors in that? And what is the overlap between standard restructured and SMA 2 book?

--------------------------------------------------------------------------------

Unidentified Company Representative, [159]

--------------------------------------------------------------------------------

It's [INR 3,700 crores].

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [160]

--------------------------------------------------------------------------------

And this is, major comes from steel as well as power.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [161]

--------------------------------------------------------------------------------

And how much is...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [162]

--------------------------------------------------------------------------------

And overlapping comes around 65% to 70% (inaudible).

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [163]

--------------------------------------------------------------------------------

Okay. And sir, how much is the steel exposure in this, steel and power, sir?

--------------------------------------------------------------------------------

Unidentified Company Representative, [164]

--------------------------------------------------------------------------------

Steel is (inaudible).

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [165]

--------------------------------------------------------------------------------

INR 3,056 crores, major is there.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [166]

--------------------------------------------------------------------------------

(inaudible) INR 3,056 crores is steel account?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [167]

--------------------------------------------------------------------------------

Major is steel.

--------------------------------------------------------------------------------

Anand Laddha, HDFC Asset Management Company Ltd. - Manager of Equities, Fund Manager of Foreign Securities, Senior Equity Analyst and Equity Dealer [168]

--------------------------------------------------------------------------------

This is one account only or multiple accounts?

--------------------------------------------------------------------------------

Unidentified Company Representative, [169]

--------------------------------------------------------------------------------

No, no. Number of accounts.

--------------------------------------------------------------------------------

Operator [170]

--------------------------------------------------------------------------------

Next question is from the line of Sangam Iyer from Subhkam Ventures.

--------------------------------------------------------------------------------

Sangameshwar Iyer, Subhkam Ventures - VP of Investments [171]

--------------------------------------------------------------------------------

Just wanted to understand from you, given that the kind of outlook that you have given for the next financial year in terms of lower slippages, lower credit costs, et cetera, how should one be looking at the absolute gross and net NPA going forward?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [172]

--------------------------------------------------------------------------------

Now basically, like NCLT cases, earlier, we were thinking that by 31 March, they said some provision will happen. But because this is like we also knew we had knew somehow, some hurdles keep on coming. But still, we have worked out, of course, not that we have not worked out. So some here or there deal may happen. But generally, these big accounts only we have worked out, some sooner. Resolution will happen. So my idea is that, first, my step will be that by September '18, the gross NPA should be around approximately, it will be around 9.5%, and net NPA will be less than 5.5% because my first target will be to bring it below 6%. So by 30 September, it should be below 5.5%, net NPA. And of course, by March '19, what we are expecting is gross NPA around 9% and net NPA around -- less than 5%. Why is this slowly going to happen? In some cases, shareholder NCLT, change in management is happening. They will get immediate funds. So there, the resolution will happen quickly. But in some cases, where we have decided to go for restructuring, there, although we'll start booking the interest income. But in those cases, because of this RBI revised guidelines, earlier, after 1 year, we used to upgrade the account. But now they said the specified minimum is that 20% minimum should be paid off [into allowance.] So it will take around, you know upgradation will take a little slow process. It will take 2 to 3 years' time. Income will be booking, but NPA improvement will take some time, in those cases.

--------------------------------------------------------------------------------

Sangameshwar Iyer, Subhkam Ventures - VP of Investments [173]

--------------------------------------------------------------------------------

So sir, basically what you are saying is that the major component of our recovery and upgrades for the next financial year is from resolutions (inaudible) only. Around 50 basis points is around what you're predominantly looking at the normal case of recovery and upgrade.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [174]

--------------------------------------------------------------------------------

This is a bigger account resolution, but of course, in smaller accounts, it's same. The recovery and upgradation position has improved substantially, that in our recovery and return of accounts, recovery upgradation has improved. So there also, basically, we have developed one system. Why don't you tell about that system that we have (inaudible), so that improved the recovery process. So that accounted for here. That in Agriculture also, this -- the resolution on a (inaudible) basis, we have posted special one officer in each regional office for resolution of Agriculture NPA accounts and for smaller accounts also. So that (inaudible) will tell you about that.

--------------------------------------------------------------------------------

Unidentified Company Representative, [175]

--------------------------------------------------------------------------------

For the recovery, to give a special emphasis, for the field function, now we have provided one recovery app. There, all field people will be getting the borrowers' (inaudible) locations also to go and contact them. And we have a special program, like DREAMS, what we call daily recovery enabling asset monitoring system, wherein we have given value-wise breakup of the accounts to each officer. So that is very particular, on a particular day, he had to contact this 3 or 4 borrowers that is NPA borrowers. So in that, he will work out whether it is ready for the upgradation or he has to go for the (inaudible) or he has to go for the recovery action. So that is the way, how we are moving into. In the last quarter, we have introduced it and it has given excellent results. And for this year, we are continuing with the same vigor. That's how we are moving further recovery.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [176]

--------------------------------------------------------------------------------

So that's how we're able to further recover our smaller NPAs.

--------------------------------------------------------------------------------

Sangameshwar Iyer, Subhkam Ventures - VP of Investments [177]

--------------------------------------------------------------------------------

Sir, in terms of our overall recovery from NCLT cases, in absolute terms, what is the kind of reduction that we're looking at versus the gross NPA from those -- from NCLT cases here in your assumption of bringing down that level to 9.5% by the first half?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [178]

--------------------------------------------------------------------------------

We are expecting, it is only because it is totally guided by the acts and so many legal issues are involved. By June, we are expecting around INR 3,700 crores resolution, another by September, INR 2,500, crores, to 7,000 -- INR 6,000 crores.

--------------------------------------------------------------------------------

Sangameshwar Iyer, Subhkam Ventures - VP of Investments [179]

--------------------------------------------------------------------------------

So sir, total, INR 10,000 crores resolution happens, so that means the gross NPA...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [180]

--------------------------------------------------------------------------------

(inaudible) because these are all guided by so many legal issues there are different -- different people are printing, the new (inaudible) are coming there because legally, it is more of a legal run situation now.

--------------------------------------------------------------------------------

Sangameshwar Iyer, Subhkam Ventures - VP of Investments [181]

--------------------------------------------------------------------------------

Right. So then, what I'm trying to understand is from the -- in a total term, if INR 10,000 crores gets resolved, so our gross NPA would come down, assuming a 50% haircut, by 50%, right? 50% of that resolution amount?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [182]

--------------------------------------------------------------------------------

30% to 40% -- 30% to 35%.

--------------------------------------------------------------------------------

Sangameshwar Iyer, Subhkam Ventures - VP of Investments [183]

--------------------------------------------------------------------------------

To that extent, it will come down. We are looking at around almost 200 basis points reduction by September. So that is what I was trying to understand. Where are the avenues for recovery that we're looking at? Because...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [184]

--------------------------------------------------------------------------------

Haircuts are a (inaudible) is slightly more than the haircut [over] to where we are expecting.

--------------------------------------------------------------------------------

Operator [185]

--------------------------------------------------------------------------------

Next question is from the line of M. B. Mahesh from Kotak Securities.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [186]

--------------------------------------------------------------------------------

Just wanted to recheck on this number. You had indicated that you had outstanding exposure to power sector on the power side was INR 18,794 and INR 5,620 crores was NPAs. In an earlier question, you had indicated that you had roughly about INR 3,000 crores in standard restructured loans. Is that correct?

--------------------------------------------------------------------------------

Unidentified Company Representative, [187]

--------------------------------------------------------------------------------

INR 18,794 crores is the private sector exposure under power. Out of which, INR 3,315 crores is NPA. The INR 5,620 crores is restructured NPA. [Now as on] this, INR 3,300 crores is the NPA. INR 5,620 what we have mentioned is for the entire sector, not for private.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [188]

--------------------------------------------------------------------------------

What is 3,000...

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [189]

--------------------------------------------------------------------------------

Our standard restructure is INR 3,720 crores that we've [done for.]

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [190]

--------------------------------------------------------------------------------

INR 3,720 crores, is it?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [191]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [192]

--------------------------------------------------------------------------------

No, but your outstanding restructured loans that you reported for the quarter, that is also a similar amount. And you also indicated in one of the earlier questions that there is steel exposure, which is also part of the standard restructured loans.

--------------------------------------------------------------------------------

Unidentified Company Representative, [193]

--------------------------------------------------------------------------------

The total restructured under which are standard, that is INR 3,720 crores. Total restructured is INR 18,534 crores.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [194]

--------------------------------------------------------------------------------

Okay, so let me rephrase this question, in this INR 3,720 crores, how much would be power sector?

--------------------------------------------------------------------------------

Unidentified Company Representative, [195]

--------------------------------------------------------------------------------

INR 3,315 crores is the private power.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [196]

--------------------------------------------------------------------------------

INR 3,315 crores, is it?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [197]

--------------------------------------------------------------------------------

INR 3,315 crores.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [198]

--------------------------------------------------------------------------------

I'll just rephrase this, INR 3,315 crores off the INR 3,700 crores of standard restructured loans pertains to the power sector?

--------------------------------------------------------------------------------

Unidentified Company Representative, [199]

--------------------------------------------------------------------------------

Yes, it is restructured.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [200]

--------------------------------------------------------------------------------

Okay. And in your SMA-0, SMA-1 and SMA-2, today, do you have a lot of power -- how much of the balance exposure are you expecting in form of NPAs? Barring this INR 3,300 crores, which is under restructured format, are you expecting any other NPAs in the power side?

--------------------------------------------------------------------------------

Unidentified Company Representative, [201]

--------------------------------------------------------------------------------

(inaudible).

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [202]

--------------------------------------------------------------------------------

I think by March, by and large, one account was still (inaudible) that also went away. Now there is...

--------------------------------------------------------------------------------

Unidentified Company Representative, [203]

--------------------------------------------------------------------------------

We don't have anything.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [204]

--------------------------------------------------------------------------------

We don't have any much -- we don't have anything, major accounts.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [205]

--------------------------------------------------------------------------------

And this INR 3,300 crores can slip into NPAs?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [206]

--------------------------------------------------------------------------------

That will (inaudible) because these are all running through the restructuring still...

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [207]

--------------------------------------------------------------------------------

So there's been no payments so far, is it?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [208]

--------------------------------------------------------------------------------

So far, it is performances are, I mean, responding to the restructuring scheme. It's a matter of time before the (inaudible) because there are so many factors are involved in this (inaudible) plus availability of (inaudible), plus (inaudible) is -- so many factors are there and that (inaudible), so all those things are well-received because this is not a cash surplus situation.

--------------------------------------------------------------------------------

Unidentified Company Representative, [209]

--------------------------------------------------------------------------------

(inaudible).

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [210]

--------------------------------------------------------------------------------

Okay. Sir, my last question, these yield advances, cost of deposits and margins that you had discussion earlier on, this number for 4Q FY '18 pertains to the full year numbers, right? Because you report 1Q, one half, 9 months and full year? Is that right? Which is why you're not able to explain this movement where NII has declined, margins have stabled.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [211]

--------------------------------------------------------------------------------

Let's see, NII, you can see, quarter-on-quarter as well as for the full year. There are 2 slides, different slides are there. One is quarter-on-quarter...

--------------------------------------------------------------------------------

Unidentified Company Representative, [212]

--------------------------------------------------------------------------------

(inaudible).

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [213]

--------------------------------------------------------------------------------

There are 2 slides, one gives you the quarter-on-quarter position. The other one gives you (inaudible) this is Q1, the net interest income. What we have seen is that Slide #32, it was -- Q1 is INR 2,713 crores. For Q2, that is a standard for the Q2 it was INR 2,783 crores, which has increased to INR 3,679 crores in Q3 and which has come down to INR 2,988 crores.

--------------------------------------------------------------------------------

Unidentified Company Representative, [214]

--------------------------------------------------------------------------------

I think what he wants to know is net interest margin for this quarter individually and then for the year because...

--------------------------------------------------------------------------------

Unidentified Company Representative, [215]

--------------------------------------------------------------------------------

Full the year, yes.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [216]

--------------------------------------------------------------------------------

So this is for the full year. If we view quarter-on-quarter, then there will be, maybe the (inaudible) will be there. Quarter-on-quarter, as you know, they are going -- because last year, when we started, 2017, March, our net interest margin (inaudible) 2.39 percentage, which has increased to 2.65 percentage now. And for global, it was $2.23 percentage, which has gone up to 2.42 now. So quarter-on-quarter, it has been growing now. I think by the end of the year, we have able to project a much improved margin because of (inaudible).

--------------------------------------------------------------------------------

Unidentified Company Representative, [217]

--------------------------------------------------------------------------------

Show him calculation also.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [218]

--------------------------------------------------------------------------------

My last question, outside the NCLT cases of INR 15,000, you have a balance of about -- you have a total gross NPAs in the large corporate segment of roughly about INR 23,000. Have you as a bank initiated NCLT process in the other accounts as well?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [219]

--------------------------------------------------------------------------------

No, we initiated in the...

--------------------------------------------------------------------------------

Unidentified Company Representative, [220]

--------------------------------------------------------------------------------

We -- in all the cases we initiated, the resolutions are as said. We had (inaudible) resolution can (inaudible). Number one is normal restructuring. Number two is change of management. Number three is payment of all dues. So we are trying that. And whenever possible, wherever it is difficult, we are going for restructuring, but it's subject to external rating. In case of (inaudible) only then it would go to NCLT. So time being, it's too early to (inaudible) to go to NCLT. We are initiating other (inaudible).

--------------------------------------------------------------------------------

Unidentified Company Representative, [221]

--------------------------------------------------------------------------------

(inaudible).

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [222]

--------------------------------------------------------------------------------

Have you as a bank initiated NCLT cases on your own, barring the INR 15,000 crores of what RBI has indicated -- has implemented?

--------------------------------------------------------------------------------

Unidentified Company Representative, [223]

--------------------------------------------------------------------------------

(inaudible) Yes, we have initiated.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [224]

--------------------------------------------------------------------------------

Okay. How many of that -- what is the total quantum of NCLT cases that you're in?

--------------------------------------------------------------------------------

Unidentified Company Representative, [225]

--------------------------------------------------------------------------------

Now as of (inaudible), NCLT is (inaudible) plus 5,000.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [226]

--------------------------------------------------------------------------------

That is available to us. Have you, as a bank, initiated on your own on some of the other cases?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [227]

--------------------------------------------------------------------------------

Yes. We have initiated. It comes around -- one is around INR 400 crores.

--------------------------------------------------------------------------------

Unidentified Company Representative, [228]

--------------------------------------------------------------------------------

(inaudible) INR 600 crores.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [229]

--------------------------------------------------------------------------------

And the other one, INR 600 crores. Less than INR 1,000 crores.

--------------------------------------------------------------------------------

Unidentified Company Representative, [230]

--------------------------------------------------------------------------------

(inaudible) Totally INR 1,000 crores.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [231]

--------------------------------------------------------------------------------

Any reason why you have been quite slow in initiating on your own on the IBC cases?

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [232]

--------------------------------------------------------------------------------

I will say that from the (inaudible) identified in December by RBI and the actual guidance is that we have to get -- we have to do them in-house any resolution is possible, 6 months, we don't open it to NCLT, we also give an opportunity. We are working on that. The first batch is, I think 1/4/18 was the cutoff date. Up to 30 September, if we are not able to find any resolution, then we open it up for NCLT.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [233]

--------------------------------------------------------------------------------

If you leave the RBI guidelines, so in the last 4 quarters, your average loss NPA in the large corporate book is about INR 20,000-odd crores. INR 15,000 crores has been deferred by the RBI. There is a large amount of pool of loans which is available where you can initiate the NCLT process.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [234]

--------------------------------------------------------------------------------

In these cases, actually, it depends upon the leader and majority view in the consortium. In none of the cases, we are the leaders here. We are having 6% to 8% share in this.

--------------------------------------------------------------------------------

M. B. Mahesh, Kotak Securities Limited, Research Division - Senior Analyst [235]

--------------------------------------------------------------------------------

But any bank, even if you have minimum of INR 1 lakh crores, you are allowed to initiate the NCLT process, right?

--------------------------------------------------------------------------------

Unidentified Company Representative, [236]

--------------------------------------------------------------------------------

(inaudible) but they are the majority, being a consortium partner with the lender, it was very critical to lenders for a decision also. But this started from January onwards until the one, two cases when it went for NCLT. One case was (inaudible) deadlines were put and -- for the two also, deadlines were put (inaudible). Thereafter, the February 12 they told that, where there were INR 2,000 and above, take a reference date [INR 1 crore] and within September (inaudible) even then, there is opportunity to go for in-house resolution. After September, if no resolution has come, then refer it to NCLT.

--------------------------------------------------------------------------------

Operator [237]

--------------------------------------------------------------------------------

Next question is from the line of Roshan Chutkey from ICICI Prudential Asset Management.

--------------------------------------------------------------------------------

Roshan Chutkey, ICICI Prudential Asset Management Company Limited - Associate VP and Analyst [238]

--------------------------------------------------------------------------------

Can you please repeat the (inaudible) exposure in the standard restructured bucket?

--------------------------------------------------------------------------------

Unidentified Company Representative, [239]

--------------------------------------------------------------------------------

Standard restructured bucket. (inaudible).

--------------------------------------------------------------------------------

Unidentified Company Representative, [240]

--------------------------------------------------------------------------------

Total standard restructured is INR 3,000 crores is (inaudible).

--------------------------------------------------------------------------------

Roshan Chutkey, ICICI Prudential Asset Management Company Limited - Associate VP and Analyst [241]

--------------------------------------------------------------------------------

Out of that, how was the steel? Standard restructured.

--------------------------------------------------------------------------------

Unidentified Company Representative, [242]

--------------------------------------------------------------------------------

(inaudible).

--------------------------------------------------------------------------------

Unidentified Company Representative, [243]

--------------------------------------------------------------------------------

INR 3,000 crores is your -- is for -- it's for restructured. Out of which, INR 2,745 crores is (inaudible).

--------------------------------------------------------------------------------

Unidentified Company Representative, [244]

--------------------------------------------------------------------------------

Standard is INR 300 crores. Standard restructured in the steel is INR 300 crores.

--------------------------------------------------------------------------------

Roshan Chutkey, ICICI Prudential Asset Management Company Limited - Associate VP and Analyst [245]

--------------------------------------------------------------------------------

INR 300 crores, okay.

--------------------------------------------------------------------------------

Operator [246]

--------------------------------------------------------------------------------

I now hand the conference over to [Mr. Agarwal] for closing comments. Over to you, sir.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [247]

--------------------------------------------------------------------------------

Before you hand it over to [Mr. Agarwal,] so I request all the analysts, we have organized analyst week on 15th, Tuesday, at 4:30 p.m. in our (inaudible) office. So we'll all be there, myself and EDs and some of the general managers will be there. I request and invite you all for the interactive session.

--------------------------------------------------------------------------------

Unidentified Company Representative, [248]

--------------------------------------------------------------------------------

Yes, thank you, (inaudible), and your team for taking time out, and I would like to thank all the participants for joining in. Thank you, sir.

--------------------------------------------------------------------------------

Rakesh Kumar Sharma, Canara Bank - MD & CEO [249]

--------------------------------------------------------------------------------

And this analyst week, please make arrangement for coming. It's the 15th at 4:30 p.m. Thank you.

--------------------------------------------------------------------------------

Operator [250]

--------------------------------------------------------------------------------

Thank you very much. Thank you. Ladies and gentlemen on behalf of

(technical difficulty)