Let's move on now. We've got lots of corporate earnings to track. So, Bank of Baroda is the second management on the show now. Healthy set of Q4 numbers, strong growth, stable margins, better asset quality. We have with us, Dev Datta Chand, MD and CEO of Bank of Baroda now joining in. Thank you very much, Mr. Chand, for joining in. This is Rima here. Let me begin with the bank raising the loan growth guidance to 12 to 14%. An increase of 100 basis points. What is driving that? And if you could particularly talk about gold loans because that is doing very well. And even the corporate growth, after going through a flat patch, has bounced back smartly, 10% plus growth. So, the overall numbers, the confidence that gives you to achieve this and these segments.
Rima, you said right. We had one of the strongest quarterly growth in last 10 quarters as far as the advance growth is concerned. And the advance growth as against the guidance of 11 to 13, the advance growth was 16.2%. And the good part of why we assumed a higher advance growth for our guidance in as far as 26-27 is concerned, reason being, the deposit growth has been very encouraging as far as we are concerned. I think the deposit market, the money is coming back to the banking system. That's something very positive. Secondly, we have outperformed our guidance significantly in last year. And thirdly, the basic assumption of the geopolitical issue, we are slightly optimistic with regard to the timelines. So, considering all the three factors, we upsized the guidance, the loan guidance by 1%. As against 11 to 13%, we made it 12 to 14%. Specifically talking about the corporate book, always we say the Q3 and Q4 are always productive for us. And because that allows us to significantly adjust the busy season as far as the economy is concerned. And going like initially Q1 and Q2, slightly the growth was less and ultimately we ended up at 11.2%. So, I think in the same way, if you look at the overall economic scenario in terms of the demand and the area where we operate, particularly the renewal sector has done extremely well. Similarly, the ECLGS is going to give a boost also this year. So, I think we go by the same guidance of around 10% for the corporate loan. Gold loan my base is low as compared to other banks. So, in terms of percentage, it looks higher. But then as far as the asset quality overall, it looks very good as on today. So, in the same way, we're still positive with regard to the gold loan.
Okay. All right. Hi, sir. Good morning. Good to see you. When you have reduced your dependence on bulk deposits if I look at the recent quarter. Could you tell us what kind of CASA ratio are you looking at in the coming quarters if you could help us out with that? And your CD ratio, I think is holding around 85% odd. Where is that one headed as well if you could just give us some brief details?
Look, CASA has been one of the strong points as far as we are concerned and we've been focusing on CASA for last many quarters. And if you look at my growth of the CASA is 9.8% and the saving is at 9.1%. And we have been the median of the banks average were able to outperform that for last many quarters. We have strengthened the CASA in terms of product, process, service, everything and that is what possibly is the outcome in terms of a higher growth. So, the CASA percentage as on 31st March was 38.9% which I believe is one of the top quartile in terms of the banks you would have seen the number. At the same time, going forward also, I think we maintain the similar number. We don't give a CASA guidance, but always the bank's efforts has been to maintain the CASA. If you look at year to year, the loss of CASA percentage is only 100 bps, 107 bps which is again one of the lowest cuts that we have seen in the market. So, in that way our focus on CASA both in terms of product, in terms of improving the processes, in terms of bundling products, in terms of getting into bulk tie-ups. I think those are the things which the bank continues to do. And in the same way, we'll be in a position to maintain around 39% going forward.
As far as the credit deposit ratio we talked about, globally, yes, we are at 85. But domestically, we are almost at 83. So, earlier also, we said that we're comfortable operating the range of 81 to 83 as far as the domestic CD ratio is concerned. The reason being, we have huge alternative resources in terms of raising to manage liquidity. We're one bank who raised the green infra sometime back. We got a good response. We have been raising infra bond. We got also a lot of refinance from other institutions. So, in that way, resources are quite strong as far as the bank is concerned. We'll be comfortable operating as far as domestic CD is concerned, roughly between 81 to 83 in that band.
Mhm.
So, while you have guided for cost of funds to have bottomed out at 4.78%. Generally, your loan yields have been trending lower if I look at it over the last couple of quarters. When do you expect the loan yield to go up because that can push up your NIMs higher?
All right. If you look at the good part happened in this quarter. The growth in interest income has been higher than the interest expenses. So, that's something positive, and that's why the NII has gone up by 9.7%. My NIM has improved vis-à-vis the last quarter. So, saying so, going by the current geopolitical and the consequent impact on the market, it looks on the liability side, the cost is going to be sticky. So, last time we gave a guidance of reducing, but we are no more giving. The cost is going to be sticky there. The moment the cost is going to be sticky, possibly, there may be realignment of rates happening both on the advances and also on the deposit. Subject the liquidity continues to be as it is. If the liquidity position improves significantly, possibly again we may see a lowering of both the yield and also the cost side. But they are all because the situation we are in is particularly slightly different because of the geopolitical issue and we need to factor that in. But as of today what I look into the cost on the deposit is sticky. We are not looking at any further reduction there.
And the loan yield? I think it was 8% in Q4 FY26. It stays here?
There are two aspects here. One aspect is a repo linked rate. So as long as the repo is the same, the benchmark rate can't increase but the spread can undergo a change depending upon the regulatory guidelines with regard to the time we can realign the spread. MCLR still you would have seen it was sticky in terms of reduction there. The only segment where I see bit of an upward trend in terms of yield is corporate book which is not aligned or which is not linked with MCLR. There is almost now 20-21% of the corporate book which is again non-MCLR. Typically linked to TBL, GSEC or any other similar rate. So that is a segment I'm looking at where there can be upward change happen in case the liquidity persists to be tight and the rate matrix also continues to be tight in that manner.
All right, let's focus on asset quality then, sir. Slippage went up a wee bit though asset quality on the whole has been stable or in fact improved. Could you give us some guidance on that parameter? How do you see asset quality pan out and also on the slippage ratio?
Yeah, if you look at asset quality again like on the business side, one of the best in last many years I would believe it in terms of the asset quality GNP at 1.89 net NPA because of the floating provision of 1,500 crore. And net NPA now at 0.45. The credit cost excluding floating provision is at 0.32. The slippage ratio is at 0.76. These are all within our guidance that we give. So, going forward also, we maintain to keep the asset quality the same. It has been one of the strength of the bank for last many years now in terms of asset quality. But, let us also factor in there is a geopolitical event which is again something beyond us in that way. So, we need to factor in any impact coming big time because we run a large international book also. So, considering that, we're not revising or improving the guidance with regard to slippage or credit cost. Our slippage ratio continues to be 1 to 1.25, although we've been consistently below that for last many quarters now. Similarly, the credit cost will be below 0.6. The credit cost for full year is 0.46. So, in that way, I think I do have headroom in terms of guidance in case any geopolitical issue impacts the market big time. Otherwise, I think the journey of the bank in terms of improving asset quality would continue.
