Operator: I welcome and thank each one of you for joining us today for the Punjab & Sind Bank earnings call for Q2 FY 2027. Please note that this conference is being recorded, and all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the opening remarks by the management. Should you need any assistance during the conference call, please raise your hand on the WebEx panel or press star three hash on your phone. I repeat, should you need any assistance during the conference call, please raise your hand on the WebEx panel or press star three hash on your phone. I would now like to introduce the management of Punjab & Sind Bank.
Operator: We have with us today Shri Swarup Kumar Saha, Managing Director and Chief Executive Officer, Shri Ravi Mehra, Executive Director, Shri Rajeeva, Executive Director, and Shri Arnab Goswami, Chief Financial Officer. I would now like to hand over the conference to Shri Swarup Kumar Saha, MD and CEO of Punjab & Sind Bank for the opening remarks. After which, we will have the forum open for the interactive Q and A session. Thank you, and over to you, sir.
Swarup Kumar Saha: Yeah. Thank you, Mr. Ganesh, and a good morning to all of you, and welcome to this Q2 earnings call of Punjab & Sind Bank. Thank you for joining us. The board of the bank has approved the reviewed results of the bank as of 26 September 2026, and the necessary results were uploaded in the stock exchanges along with the presentation. All of you must have already gotten an opportunity to go through the presentations. Just to set the context, I would like to present some of the highlights of the bank's performance of the 26 September quarter. Overall business grew by over 15.7% and stood at INR 279,000 crores. The deposit grew at 13%, and the total deposit was at INR 153,000 crores plus.
Swarup Kumar Saha: Advances grew at a healthy rate of 19% plus, and it stood at INR 125,919 crores. The bank continues to grow in terms of its business mix over 15% consistently over the last few quarters. The CD ratio of the bank was at 82.13%. We expect that it will be going forward as we speak, in our guidance area, we expect that the deposits will grow between 13% to 14% and advances will grow at 18% to 20%. So overall, we expect that the CD ratio will be around 82% over the next two quarters. The CASA, of course, has grown at 7.5% YOY. The share has gone down. Of course, we know the challenges in maintaining the CASA. However, we are making a lot of efforts. But the ratio has dipped slightly at 28.83%.
Swarup Kumar Saha: The focus on the bank's advances, of course, has been RAM, as we have been speaking all along. Overall, the RAM advances has grown by over 31%. The share of RAM advances to the overall gross advances is now at 61.37%. As we have been speaking earlier, our guidance for the RAM advance percentage could be around 65% for this current year and take it up to 70% in FY27, FY28. So we are on track. If you compare our September-to-September numbers, we find that the RAM percentage has grown from 55.15% to 61.37%. So we'll continue to work in that area. In some of the other areas on the business side, of course, the growth has been evenly balanced between retail, Agri, and MSMEs. The retails have grown at 42%, Agri at 16%, MSME at 28.69%.
Swarup Kumar Saha: In terms of profitability and income, the healthy part of the Q2 result was that the net interest income has grown by 22%. I think that is a healthy sign, which is going to take the bank forward to improve its margins, profitability, ROAs, et cetera. The operating profit of the bank has increased by 22% YOY, and it was at INR 617 crore in Q2. The net profit has also increased at nearly 40% and stood at INR 412 crore. We are moving to a steady increase in our quarterly operating net profits. This has been, of course, helped by a good 23.6% growth in the core fee income. We continue to monitor that.
Swarup Kumar Saha: We continue to put lot of strategies in improving our core fee income on the various products that we have, whether it is non-farm business, whether it is cross-selling through third-party products, whether it is other service charges. We find that is showing a good traction quarter on quarter over the last few quarters. We continue to work on that. Of course, in view of the movement in the geopolitical situations, in the movement of the yields, the treasury performance has been noted with the hardening of the yields. In spite of that, our operating profit has increased by 22% to INR 617 crore.
Swarup Kumar Saha: In spite of a comparatively lesser recovery in written-off accounts compared to the previous quarter, we continue to show traction in the operating profits, which shows that the bank is slowly but steadily trying to generate operating income through its core business that is on deposits, advances, and other areas, and not totally depend on the market orientations of the movement in yields. The asset quality also has improved. Gross NPA is at 2.09%. Net NPA continues to improve at 0.61%. PCR also has improved. Our capital adequacy also stands at 16.55. We see it at 15.49. In terms of some of the efficiency ratios, our net interest margin has improved by 17 bps QoQ to 2.77%. Return on assets has increased to 0.88%, compared to, and return on equity also has increased to 13.21.
Swarup Kumar Saha: The cost-income ratio has also marginally declined to two, and we will continue to monitor that ratio in a big way by increasing our income overall. These were some of the highlights in terms of the guidance. We feel that the bank's overall trajectory, as I said, would be on improving our deposits growth, improving our CASA percentage, and we have taken a lot of efforts in terms of various products. However, we continue to focus on that. A lot of these programs are being carried out. We will be doing special campaigns for deposit mobilization. We expect that the Gross NPA to be below 2% by the end of March. Net NPA, already we have given a guidance of 0.65, we are already at 0.61. We will continue to now reduce it further. Recovery upgradation, we had given a guidance of INR 1,000 crore plus.
Swarup Kumar Saha: We have already reached INR 622 crore. We are on track in all our guidance areas and a lot of other transformational projects that we have been talking about are being implemented. These are presented in the slides. I would not like to repeat them. Therefore, we feel that the bank is now consistently performing and delivering on the various expectations that we had raised in the previous calls that we had. The bank continues to work on various other transformation projects like digital transformation, on collection efficiency, recovery management. Our GIFT City is just around the corner, which should be live and ticking around November end. We also are now more or less there for the forex trade module that also should kick in by this Q3.
Swarup Kumar Saha: Therefore, most of the projects that we have been talking about are nearing its completion, and we expect that the returns on those investments will be coming very soon. That is all from my side for the time being. I will now be happy to take the question and answers. Thank you very much.
Operator: Thank you, sir. We will now begin the Q&A session. Ladies and gentlemen, we will wait for a moment while the question queue assembles. I request the participants to limit their questions to 2 per person, and please rejoin the queue for any additional questions. Anyone who wishes to ask a question may raise their hand by clicking on the "Raise Hand" icon on your WebEx panel. For those who have joined us via audio call and wish to ask a question, please press star 3 hash. If anyone is having connectivity or audio issues, you may share your questions on WhatsApp to us at +91 77386 88746. I repeat, if anyone is having connectivity or audio issues, you may share your questions to us at +91 77386 88746. Before asking questions, I request all participants to please introduce yourself and your organization. First question is from Sushil.
Operator: Sushil, please go ahead.
[Analyst 1]: Congratulations, team PSB for the excellent result and guided revision on upward trajectory, which speaks for India growth story.
Swarup Kumar Saha: Thank you.
[Analyst 1]: Sir, you have taken a lot of Herculean tasks over a period of your tenure and the team's tenure to enhance the visibility of Punjab & Sind Bank in corporate and RAM. What makes you pick the upward guidance specifically on all parameters which leads to a betterment of bank? Second thing, to strengthen the same, what kind of initiatives are being taken for enhancement in credit with digital roadmap, human resource, branch expansion, bringing more efficiency? Second thing, the RAM breakup, if you could give whether it is more number of customers or ticket per SUV or a car or housing loan have increased QoQ. My first question is treasury outlook.
Swarup Kumar Saha: Yeah. Thank you, Mr. Choksi. As we go along during the financial year and as we continue to consistently, the team consistently performs, it enables us a room to improve our guidance on various factors. Therefore, we feel that in terms of the overall business, we continue to retain the guidance and move ahead. In fact, in terms of some of the other guidance areas like growth and NPAs, I think we should be much beyond the numbers that we have already set our goals for. This has been primarily been enabled by various, as you rightly said, that we have been trying to build in lot of systemic platforms, the systemic enablements, which allows the bank to perform in a much more efficient manner. The idea was that the bank should become the most efficient bank in the country.
Swarup Kumar Saha: To build the most efficient bank in the country, we had to build a lot of structures, a lot of processes had to be redefined, a lot of products had to be customized, and a lot of team building and teamwork has to be inculcated amongst the workforce. Therefore, all that we have been doing for the last few years are now slowly and steadily yielding results. The teams are now much more goal-oriented. The teams are much more enablers, particularly the branches. The field functionaries are having much more enablers to perform. For example, I like to tell you that on the digital platform that we have built so far, in terms of the 12 products that we now provide in a single QR code, 50% plus of our vehicle loans are done through our digital platform.
Swarup Kumar Saha: More than 40% of our housing loans are either done through the digital platform, through an STP process or through the assisted journey. That frees a lot of energy, a lot of manual intervention in our assessment. We are now building on the gold loan. Earlier we did it on up to INR 2.5 lakhs, now we have opened it up to INR 50 lakhs. We have brought in commercial vehicle loans, we have brought in personal loans, we have brought in mutual fund loans. These are all some of the digital transformations that are happening. Top it all, we have now engaged a global consultant to do a holistic digital transformation, both on the asset and on the liability side.
Swarup Kumar Saha: Whatever we have been doing so far on isolations in the digital part will now bring together to overall digital transformation 2.0 will have the best of the mobile app, mobile enablers, so that our reaching out to our customers becomes much more efficient. Therefore, in terms of the various parameters that we have been able to build in the structures and some of them are still work in process and once they also get crystallized, I think it will be a great boon to the bank's future. In fact, if you talk on the capacity part also, the bank has put in a lot of transformation initiatives in the capacity building of the team, both at head office and in the field functionaries. They have now been exposed to more and more state-of-the-art trainings that are required to improve their capacity.
Swarup Kumar Saha: We have done a HR transformation also of last few years and continue to do that, build up on that. As you said that regarding the branch expansion, et cetera, we are opening branches. We have identified top 200 districts, wherein the country has 80% of the bank business. We are expanding them to those areas where we are not there so far. We have already found out 300 potential centers. The branches will get opened as the premises get finalized, as we appoint more and more workforce at various levels. We are doing a lot of recruitment at the LBO level, PO level, at the CSA level. All these things will fructify and give the bank results. Overall, we feel that the bank's trajectory on the guidance part could be on the upper side and I feel that we will be able to maintain that.
Swarup Kumar Saha: Finally, on the treasury, yes, of course, we are constrained, the inter-banking system. We are going through this rough patch of the treasury front. Therefore, we have to wait and watch the developments that happen on the geopolitical side and how already RBI has started the reverse cycles on the repo rate. We expect that some more corrections will happen on the repo rate on the upper side. Therefore, we will be monitoring that part, the yields have hardened overall. However, on the other side, the yields will get a bit positively impacted in view of the potential rate hikes. One, 25 basis that has already been done and some more which is in the offering maybe in the next cycle. So overall, the margins may improve. We expect that.
[Analyst 1]: Sir, your margin uptake-
Swarup Kumar Saha: Like to have. So I think those-
[Analyst 1]: Sir, your margin-
Swarup Kumar Saha: Yeah.
[Analyst 1]: Sir, your margin uptake led by the current hike and estimated hike in H2 as your retail products will have a transmission. At the same time, what is the visibility on corporate book? You were the last baby one at the front end where technology updation was concerned. So you have got a better visibility and a better technology compared to peers because it is an experienced product, matured product. Now, keeping the transformation journey ahead and in the current scenario, what kind of digital spend are you doing and what kind of human resource spend you will do to enhance the capability of the bank?
Swarup Kumar Saha: Yeah. As you rightly remarked that we have been a bit late starter in terms of various projects that we have undergone. That has also helped us to imbibe the best of the technology and whether we start from the core banking updation or whether we talk on cybersecurity, whether we talk on collections efficiency, whether we talk on trade finance models, every area. Now we are bringing those products like supply chain finance, you must have seen in the presentations. We are bringing the collection management solutions, both payment and collections for corporates and government organizations. So all these are a part of the transformation exercise. I think late mover advantage also sometimes helps the bank, and we continue to do that. On the corporate credit side, we have already around INR 12,000 crores of pipeline, around in-principle sanctions of around INR 8,000 to 9,000.
Swarup Kumar Saha: Overall, INR 20,000 crores of pipeline we have already created, and we will continue to be selective and in our approach. We will be working on the pricing on very much more on a professional way, on competitive way, so that we do not lose out on our margins as such. So we have a healthy pipeline being created. This corporate credit pipeline was hardly minimum, maybe one or two year back also, when we hardly had any pipeline. Now that has been built up over a period of time to around INR 20,000 crores. So that is the area we are working on. Of course, on the HR, as I said, the capacity building, HR transformation, HR interventions on performance management culture, on target setting. What are the various components of our transformation have all been now implemented in the bank.
Swarup Kumar Saha: Again, those areas on HR also I would like to tell is that many other banks which have implemented, we went a bit beyond that and we could extract a bit more in terms of the transformation area. So I think overall, the bank is in the pivot of actually now reaching a INR 300,000 crore business by the end of this financial year and INR 400,000 crore by the end of FY 2029. The guidance on that part also remains intact. We may reach the INR 400,000 crore business much ahead of our aspirational target of March 2029. I think that we continue to move in this direction.
[Analyst 1]: Sir, any visibility on supply chain and co-lending?
Swarup Kumar Saha: Yeah. Supply chain, we have just entered now the system. I think we have built the system now. We are live and taking two, three corporates already. Now having tested the waters, so as to say, on this area we like to open it up to the various other opportunities that we have. We will continue to work on that. Again, this is a state-of-the-art system that we have now implemented. Number two, on your co-lending. Co-lending, as you all know regarding the CLM-1 and CLM-2 issue, we are building the system. The co-lending as of now seems to have slowed down a bit. Until, unless we do a bit of a, what you call the integration in a proper manner. The implementation of the RBI guidelines is of the highest. We are giving top priority to that.
Swarup Kumar Saha: We have to be very sure while we are building the systems. It has slowed down a bit. But once we build it up and to the satisfaction of the regulators, I think then we can really push it harder on that front. Maybe another one or two months for that integration to happen.
[Analyst 1]: Sir, thank you for answering my all questions. I will come back in the queue, and best luck for the current year.
Swarup Kumar Saha: Thank you. Thank you, Mr. Tripathi.
Operator: Thank you. Next question we have from Aman Singh, Shah Singhan. Please go ahead.
[Analyst 2]: Hi, sir.
Swarup Kumar Saha: Hi.
[Analyst 2]: Thank you for the opportunity. Sir, I wanted to ask two broad level questions. Firstly, there has been a chatter on the PSB consolidation again. If you would like to offer any comment on that.
Swarup Kumar Saha: Yeah. I do not think we have anything to comment at this point of time. We are not aware or not privy to any information on this matter. It is not proper for me to comment also. As of now, there is no such input that has come to us. That much only I can say.
[Analyst 2]: Sir, last year in budget, finance minister announced the formation of high-level committee for banking reform. Is the committee formed or is it still pending?
Swarup Kumar Saha: That is for the government to take a call. As of now, we understand it has not been formed yet.
[Analyst 2]: Okay. Secondly, on ECL, if you can help me with two things. Firstly, on the ECL transition impact for the bank. Because the ECL is around the corner, the transition is around the corner, and the preparedness might be at a good level at the bank. So are the transition impact and how will it impact the steady state credit cost starting FY28 for the bank?
Swarup Kumar Saha: Yeah. Our CRO, Mr. Dheeraj, will be taking this question.
Dheeraj Gaur: Yeah. Good morning. See, ECL, what we are expecting, we are yet to finalize those numbers. We are at the almost final stage. What we are expecting is around 5% on the total net worth will be the additional impact, like when I am looking for total impact perspective. Around INR 700 crore we are expecting. Since glide path is available, net impact on CRAR computation will be almost negligible. One important point is here, with the ECL, there is some RWA level changes are also there. If those changes also will be coming into effect from 1 April 2027. Net impact on CRAR will be quite minimal actually, not very much.
Dheeraj Gaur: Just to answer your second question, impact on credit cost on the second subsequent years, what we are expecting, overall provisioning requirement will be somewhere between 0.5% to 0.6% only, 50 to 60 basis point. It largely depends on how we manage our SMA portfolio. We are conscious of that it has to be managed properly. We expect that additional total provisioning requirement will be ranging between 0.5% to 0.6%.
Swarup Kumar Saha: I think to add one information here beyond what Mr. Dheeraj said is that we are working very strongly on the collections and at one point of time, our SMA percentage on a whole was beyond 9%. I think the bank has developed a lot of strong measures, systems, processes, and now the overall SMA has gone down to below 4%. We would like to bring it down to below 2% very shortly. With that happening, we are also implementing the new collection efficiency module, which will give a state-of-the-art infrastructure to our people, our workforce, so that they can manage their SMAs in a much better way. We expect that we can bring down the SMA to between 2% to 2.5% in a short span of time.
Swarup Kumar Saha: And once that happens, I think the overall run rate on the ECL provisions going forward will be much healthier, much better.
[Analyst 2]: All right. Got it. Just for one follow-up with Dheeraj, sir. The 5% net worth impact, is it including the MTM hit on HTM investments? Because one of the PSU bank highlighted that with the ECL, the banks also need to mark to market their HTM investments, which could be a big hit given the rising yields in the current scenario. Is it including that or extra?
Dheeraj Gaur: At this point of time, around 5%, which we are saying, that includes all those things. If some adverse impact on the yield has some additional impact, that is to be seen, how finally it pan out when actual implementation takes place. But as of now, it is including all this.
[Analyst 2]: So this is including the MTM or HTM investment, right?
Dheeraj Gaur: Yeah.
[Analyst 2]: And sir, on the steady state credit cost, you said 50 to 60 basis point would be the steady state credit cost in the ECL framework. Can you highlight what would be this for the SMA 1 plus 2, that portion which comes as a standard asset right now?
Dheeraj Gaur: This point of time, I do not have that number readily available.
Swarup Kumar Saha: Yeah. So I think we share it separately.
[Analyst 2]: Sir, I also had a few clarifications seeking ECL. So if you can give me some time, maybe after the silent period end with Dheeraj, sir, it would be helpful.
Swarup Kumar Saha: Sure. No problem.
[Analyst 2]: Sure, sir. We can connect offline. Thank you so much, sir. All the best for the future.
Swarup Kumar Saha: Thank you.
Swarup Kumar Saha: Thank you, sir. Next question we have from Ashok Ajmera. Ashok sir, kindly go ahead.
[Analyst 3]: Hello?
Swarup Kumar Saha: Hello. Good morning.
[Analyst 3]: Yes, sir. Good morning. I missed most of this call because I am traveling. I am little away, so I might have missed some of your answers. I have nothing much to add except to compliment you all for the good set of numbers. Just one thing, of late we are increasing our good corporate book also, our underwriting standards have also gone up substantially. The yield also in the corporate book is little higher than the retail, the housing loan, and other things. Going forward, do we plan to change the ratio between the corporate and the RAM book? How active we are in mid-size corporate? A lot of opportunity emerges in that particular book. What are your views on that? Are we really active on that or we are a little passive? Going forward, what are our plans on that, sir?
Swarup Kumar Saha: Yeah. Thank you, Ajmera ji, for your compliments. As far as the ratio between the RAM and the corporate book, I think overall, the bank's strategy would be to increase the RAM percentage further and further. We are at 61% right now. We should be at 65% by March 2027, and jack it up to around 70% by March 2028. That's the overall trajectory. Notwithstanding this strategy, within the corporate book, we'll continue to explore some good opportunities to invest in terms of assets. Of course, the main idea would be not only on the return on money, but also on the return on our pricing will also be an important component of our decision. While the trajectory would be to reduce the corporate percentage, the churning within the corporate portfolio will continue to happen based on our pricing appetite.
Swarup Kumar Saha: Therefore, I think the mid-segments, the MSMEs will continue to support, provided, of course, we get that pricing competitiveness. The approach would be on this area in that way.
[Analyst 3]: Okay, sir. Point well taken, sir. Sir, on this ECL front, the impact, and especially on the treasury book, some of the impact is going to come on the HTM also. Going forward, I know we are already, I think, the capital adequacy though is comfortable, but not to that extent. Going forward, what do you plan to raise for the capital or you feel that the proportion is right now, even with the CD ratio of, I think, 81% to 82%? Are you comfortable going forward with the same targets of the credit targets, I mean, the loans?
Swarup Kumar Saha: Yeah. We feel that the optimum CD ratio of 82% to 83% is doable for us. We still feel that we can grow at 18% to 20% on advances and back it up with a deposit growth of 13% to 14%. In terms of the, as you observed regarding the capital adequacy of the bank, as we grow on the RAM segment, the capital adequacy requirements are higher in the RAM segment. So overall, you will find a shift in the capital adequacy this quarter in view of INR 7,000 crores of additional funding that we have done. So we have the necessary approvals for capital raising, and we already have interacted with investors. We have appointed merchant bankers for the same. We just would like to have a right time opportunity to go to the market and raise some funds.
Swarup Kumar Saha: We are exploring all the avenues to raise capital, primarily through the QIP route. We will see when the opportunity arrives based on the feedback that the merchant bankers give us.
[Analyst 3]: Yeah, but I don't think this is the right time, looking at the market conditions. But anyway, your plans are already there. Sir, on the recovery front, and especially from the written-off book and otherwise also, I think we are putting a lot of efforts. So what is our total outstanding book on the written-off book and how much percentage of that recovery every year or every quarter you would see it to come in? What kind of efforts we are putting in? Coupled with that, on the technology front also, our bank is upgraded tremendously in last 2 years. You have done a great work in the technology front also. So how many journeys are still pending and what is the roadmap ahead on the technology development, sir, in the bank and what kind of budgets have we sanctioned?
Swarup Kumar Saha: I request Mr. Rajeeva, our ED, who looks after-
[Analyst 3]: Yes, sir. I would love to hear Rajeeva, sir.
Swarup Kumar Saha: Yeah.
Shri Rajeeva: Thank you, Shri Ravi Mehra. Recovery has been under our focus and that has resulted into both the ratio of GNPA and NNPA going down. To answer your questions specifically on TWO, we continue to hold almost INR 7,344 crore of TWO book. If you look at the results over last few years, we have been recovering around approximately 10% of the book. This year also so far the recovery has been almost INR 250 crore, to be precise, INR 247.88 crore. We will continue to focus on the TWO and hopefully we should be able to repeat our performance over the last year.
[Analyst 3]: Yeah. Great, sir.
Swarup Kumar Saha: If I may add to what Shri Rajiva said, is that we also now, as we talked of technology, I would like to add here. On the recovery front also, on the recovery side also, we are implementing, that is a working process, on having the best of the recovery management tool in the bank. The purchase order has been issued to the desired vendor. They will implement in around six to nine months time. The first phase will be done by March, the second phase another three, four months. Again, as I talked earlier regarding various technology tools we have implemented, we have already implemented the collection tool. The recovery tool is under implementation and we are investing heavily in that area. I request Shri Ravi Mehra to talk on the digital side on the assets that we are doing.
[Analyst 3]: Oh, good.
Ravi Mehra: Yeah. With regard to digital set message, we are working on different products. Multiple products have already been launched and almost 12 products are available as of now, in single QR code. I would just like to mention one thing, that since the inception of our digital journey from 4 November 2024, we have sourced approximately 40,000 proposals digitally. You know what, approximately at INR 1,000 crore. The sanction we have successfully underwrote is around 50% in vehicle loan and 40% in home loans. The sourcing is also very strong and we are also working on the home loans. We have recently enhanced the MSME digital lending to INR 3 crore from earlier INR 1 crore, and even the gold loan has also been enhanced to INR 50 lakh. Thank you.
[Analyst 3]: Yeah. Sir, one kind of budget, what kind of budget do we have for this 2026, 2027, and maybe going forward on the technology? Secondly, so many new things coming and especially in the cybercrime space. Now, with the DPDP Act coming in and there are various other modules which are available in the market, and the banks have to prepare themselves also with the various problems which we are facing on the digital front, especially on the cyber front. There, what is your outlook, sir, and what kind of preparations we are doing for DPDP to come to be truly compliant of that Act and various other measures which are being announced by the Reserve Bank of India to comply with?
Swarup Kumar Saha: Yeah. So see, these are regulatory measures and the bank has to prepare itself. All banks, not only us, all banks have to prepare themselves on the various expectations, whether it is on the DPDP Act or whether it is under the cybersecurity. So these are some of the things where we cannot, it is zero tolerance area. So we have to implement, and we are in the process of implementation and our teams are working in tandem with the requirements. In terms of cybersecurity also, we are upgrading our cybersecurity postures. It would have happened a few months back, but in view of some of the complications that happened in the earlier process, our cybersecurity upgradation got a bit delayed. But notwithstanding that, it happens in any organization. We are now very close to doing that.
Swarup Kumar Saha: Maybe in this quarter, we will be able to complete the RFP process, appoint a new vendor, and the cybersecurity upgradation happen. We are also working on resilience operation center, which is another very important area for implementation to make the bank resilient to the operational risk. That is a very, very strong and important area to make the banks resilient. So the resilience operation center is getting implemented. By December, it will have the first phase of implementation. By March, it will be implemented in full. So all these factors, of course, the budgets, I advise my CFO to, I do not have it offhand at my disposal.
[Analyst 3]: Yeah.
Swarup Kumar Saha: I advise my CFO to inform me separately. But point is that we are investing quite handsomely in our IT and requirements, because we know that these are indispensable requirements. These have to be done. It adds to the cost in future, but these are some of, without them, the bank's efficiency does not get to its full potential. So therefore, we are investing, but we are staggering the investments in such a way that the bank gets the total benefit out of it in the very near future. So we can assure you all that the bank.
[Analyst 3]: Yeah, sure.
Swarup Kumar Saha: is creating that infrastructure, in a big way to create.
[Analyst 3]: Yes, sir. I am sure you will do it because you are giving a lot of emphasis to the training also.
Swarup Kumar Saha: Yeah.
[Analyst 3]: You are definitely taking all these things very seriously and sincerely. All the best to you, sir, you all.
Swarup Kumar Saha: Thank you.
[Analyst 3]: Mehra sir, special compliments for all your progress. I believe, anyway, we will be again in touch. I will congratulate you for your this first inning in the banking career, maybe sometime in the next few months. All the best to you all. Thank you very much for giving me this opportunity, sir. Thank you.
Swarup Kumar Saha: Thank you so much.
Ravi Mehra: Thank you. Thank you.
[Analyst 3]: Thank you.
Operator: Thank you, sir. Next question we have from Rakesh Shah on the WebEx chat box. I will read out the first question, sir. During Q2 FY27, the bank conducted 258 financial literacy camps, reaching 3,383 participants, and facilitated banking access for 59,897 individuals under Pradhan Mantri Jan Dhan Yojana. What initiatives are being taken to improve the active usage of accounts and expand financial inclusion in underserved areas?
Swarup Kumar Saha: Yeah. Mr. Mehra will answer.
Ravi Mehra: With regard to the financial inclusion and expanding the reach to the customers for PMJDY benefits, we are increasing the number of BCs as of now, and primarily as of 30 September, we have got around 3,400 BCs. We are also increasing the number of CBCs, and we are also adding the number of products and services to be offered on the digital machines that handle devices that they are carrying. Approximately, I think 35 such services are there in the machines. We are targeting to expand the insurance part, particularly the PMJJBY and PMSBY products to each and every eligible customer under PMJDY. With regard to the expansion in the rural areas and semi-urban and metropolitan areas. With number of BCs and I think, I cannot hear.
Swarup Kumar Saha: There is a little doubt.
Ravi Mehra: No, I think there is hype. I cannot hear.
Swarup Kumar Saha: It is okay. It is all right.
Ravi Mehra: With the expansion of BC and expanding the number of products in the handheld devices, we will be covering up the allotted targets. I would just like to mention that as on 30 September, we have around 30 lakh PMJDY accounts and around 47 lakh PMSBY enrollments and approximately 15 and a half lakh of PMJDY enrollments as well.
Swarup Kumar Saha: To add to what Mr. Mehra said, is that we will be launching a pan-India campaign on financial inclusion from 21 of this month, which will carry on up to 31 December, wherein we will take all the products of the central government, state government, and reach out to our customers in the villages. It will be an outreach program from the bank side to the targeted beneficiaries for financial inclusion.
Operator: Thank you, sir. Next question from the same person, Rakesh sir. With 590 branches in rural area and 331 in metropolitan area, how is the bank leveraging its rural branch network to drive deposit mobilization, credit growth, and financial inclusion?
Swarup Kumar Saha: Yeah. So that, in rural area, we are significantly present. We have substantial network there. We monitor their performance. They have their own challenges. However, we like to leverage this network in the rural areas, and through the BCs, through the various digital methods that we have on various products, whether it is MUDRA, whether it is MSMEs, whether it is SHGs, whether it is KCC, these are some of the digital products that we have implemented. Deposit mobilization is an important area. Rural branches give us healthy deposits. We continue to leverage on the network that we already have and open more and more branches also in various areas, whether it is rural, semi-urban areas, and capture the market wherever we can from our side.
Swarup Kumar Saha: Thank you, sir. As there are no further questions from the participants, we now conclude this conference. Should you have any other further query, please reach out to Mr. Ganesh Shankarnarayan at 7738688746 or at ganesh@conceptpr.com. On behalf of Punjab & Sind Bank, I thank each one of you for joining the conference call today. You may now disconnect your lines. Thank you. Have a good day.
Swarup Kumar Saha: Thank you very much. Thank you all.
