City Union Bank Ltd Q1 2022 Earnings Call Hosted by Ambit Capital Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Akshay Ashok - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Congrats on a good set of numbers. I just wanted to know the reason why your provisioning has gone down on a Q-o-Q basis. Is it because of more restructuring? What is the reason? Because I see the number, and it has gone down on a Q-on-Q basis around sequentially around 29% provisions

Question: Akshay Ashok - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Okay, okay. So we are seeing situation improving, so? That's why you reduced it?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : Am I audible?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : Sir, on the cost of deposits or cost of fund, how much low can it go from here?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : So these 15 basis points will be on the basis of repricing not on the deposit cut that we can use from the...

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : And sir, how much was the interest reversal for the current quarter?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : INR 20 crores. Sir, so even if I adjust for that, our yield on advances has dropped from around 10.4%, quite sharply.

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : But any specific reason why the yield on advances -- is it because of the repricing? Or are we disbursing on...

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : Okay. Sir, on the -- from the ECLGS portfolio, around 5%, 6% of our book is on the ECLGS. So are we seeing any signs of stress build up here?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : From June onwards, the repayment would have to start?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : So are we seeing any slippages from there or any stress?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : Got it. Because sir, one of the peers recently reported that around 2% of the ECLGS book for slippage. So that is why I was asking.

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : And sir, just a technical question. So in case there is a stress on the ECLGS portfolio. How much is guaranteed by the government? And how will that mechanism work in case these are NPA based?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : Okay. So the additional -- so suppose there is INR 10 crore of outstanding and we give INR 2 crore of ECLGS. So 75% of INR 2 crores will be credited to us and balance will be credited as the recoveries happen.

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : Okay. Perfect. And sir, just last question. How much core buffer are we holding?

Question: Prabal Gandhi - Antique Stockbroking Ltd., Research Division - Analyst : And this is excluding the restructuring provision.