City Union Bank Ltd Q1 2023 Earnings Call Transcript

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

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Just want to understand, when we are in (technical difficulty and in this quarter, (technical difficulty). So what gives you the confidence in being able to increase the guidance?

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Sir, is this better?

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Yes. So sir, I was saying on your loan growth guidance, we have increased the guidance to 15% to 18% from 12% to 15%. And in this quarter, overall growth on the loans was slightly soft on a sequential basis. So sir, what gives us the confidence in being able to increase the guidance on loan growth? What has changed in this one quarter, if you could highlight things around that?

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : And sir, we have seen good trends in the treasury where we have not booked any losses for the current quarter as well. So sir, at what level of yields are we protected and when there will be [positive MTM ahead]? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2022 / 12:30PM, CTBK.NS - Q1 2023 City Union Bank Ltd Earnings Call

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Sure, sir. And lastly, just 2 questions on recovery part. One, the recovery from return of assets this quarter, is there any large accounts? Or is it more granular? And second, the provision reversals that will happen with SpiceJet, will be used to increase the PCR? Or will it be consumed against normal NPA incrementally?

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Recovery from return of assets.

Question: Prashant Kumar - Sunidhi Securities & Finance Ltd. - Analyst : My question is on -- again, on the liquidity side. As your CD ratio reached already still around 84%. So as per, sorry, old guidance, accelerated credit growth would be around 18 -- 15% to 18%. And so the credit growth will outpace deposit growth with wide margin. So are you going to finance that credit growth by redemption of investment? If you could give some color on the balance sheet movement like deposit advance and investment mix for FY '23. And at what level of CD ratio would be comfortable? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2022 / 12:30PM, CTBK.NS - Q1 2023 City Union Bank Ltd Earnings Call

Question: Neil Mehta - Investec - Analyst : Am I audible? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 08, 2022 / 12:30PM, CTBK.NS - Q1 2023 City Union Bank Ltd Earnings Call

Question: Neil Mehta - Investec - Analyst : Am I audible now?

Question: Neil Mehta - Investec - Analyst : Yes. Sir, my question was on the slippages. So quarter-on-quarter, we witnessed an increase in our gross slippages. If you could explain the reason for this increase?

Question: Neil Mehta - Investec - Analyst : So my question is on the gross slippages. So quarter-on-quarter, we have witnessed an increase in our slippages. If you could describe the reasons for the same?

Question: Neil Mehta - Investec - Analyst : Sir, can we say this is on account of some sort of seasonality in our business?

Question: Neil Mehta - Investec - Analyst : Got it, sir. And sir, are there any trends (inaudible) that we observed in the underlying -- some products contributing to slippages more than the others?

Question: Neil Mehta - Investec - Analyst : Sir, what I'm saying, is there any trends...

Question: Neil Mehta - Investec - Analyst : Yes. Is this better now?

Question: Neil Mehta - Investec - Analyst : Yes, sir. So what I was trying to ask was, and this is my last question. In [general,] if there were any trends observed in slippages, as in whether some particular products are contributing more to slippages than the other ones.