Srinivasan Vaidyanathan: No, it is — the December deadline is for various customer communication and customer assertion and so on and so forth, which we are working through various alternatives to accomplish.
Unidentified Analyst: Okay. And Srini, just finally, we have outside observers…
Operator: Abhishek, sorry to interrupt. May I request you to join the queue again for a follow-up question, please?
Unidentified Analyst: Okay, sure.
Operator: Thank you. [Operator Instructions] The next question is from the line of Rajiv Pathak from GeeCee Holdings. Please go ahead.
Rajiv Pathak: Yeah, hi. So, I think in the opening remarks, you alluded to like a 25 bps hit on the margins because of the ICRR and the excess liquidity. So, you would have taken approximately, say, INR1,900 crores a quarter of this hit. So, now this will from next quarter start getting normalized, right? So, the next quarter should be tracking a median of 3.85% and then maybe inch up to 4% over the next three, four quarters? And on the loan growth, do you think 4.5%, 5% quarterly run rate is possible going forward?
Srinivasan Vaidyanathan: Rajiv, we don’t give forward-looking guidance in terms of what we will grow, but we can point to past and give kind of how we have done and how we are capacitized to repeat what we have done. But in terms of the margin that you’ve talked about, we did allude to that there is an impact due to the merger management and thereby, funding certain liquidity requirement to transition and come and it has been debt funded. And so, it’s not a short-term debt funded to enter and exit. And so that’s — it will take some time. And even Sashi alluded to that in terms of how we go into it in the form of better mix, higher yielding retail products to grow. And I also mentioned about that and which is how we will approach to get that.
Rajiv Pathak: Okay.
Srinivasan Vaidyanathan: Thank you, Rajiv.
Operator: Thank you. Next question is from the line of Saurabh Kumar from JPMorgan. Please go ahead.
Saurabh Kumar: Hi, Srini, good evening. Sir, just on the LCR, so the excess liquidity that you are referring to…
Operator: Saurabh, sorry to interrupt you, your voice is not coming clear.
Saurabh Kumar: Is this better now?
Operator: No, it’s still the same. Can you please speak a little louder?
Saurabh Kumar: Yes, sir. So, the excess liquidity that you’re referring to, sir, this will be a difference between [indiscernible]…
Operator: Saurabh, sorry, we again lost your audio.
Saurabh Kumar: Will that be the excess liquidity you will referring to?
Srinivasan Vaidyanathan: Saurabh, we lost you, man. If you come back again, we’ll hear you.
Saurabh Kumar: Hello?
Operator: Ladies and gentlemen, due to audio issue, we’ll move on to the next question. The next question is from the line of Piran Engineer from CLSA. Please go ahead.
Piran Engineer: Yeah. Hi, good evening, and thanks for taking my question. Sir, firstly, could you quantify what your SLR ratios as of quarter-end?
Srinivasan Vaidyanathan: What is that?
Piran Engineer: SLR.
Srinivasan Vaidyanathan: We don’t say what it is, but we can tell you we carry more than what is required. So that the mandatory SLR is 18%. We carry more than that. That’s part of the — that’s not something that we talk about.
Piran Engineer: Okay. Fair enough. And sir, just secondly, on the branch opening. Just wanted to understand, last two quarters have been a bit weaker than expected. Why is it that branch opening is always back-ended?
Srinivasan Vaidyanathan: Very important and good. See, what happens in the branch process, so it’s very important — you asked a very important thing, right? For opening up a branch, there are a few things that go into it. One is our marketing team. Second is our credit analytics team scans the geography in the country to determine our presence and some other banks’ presence in the vicinity and maps it with the potential, potential not just on deposits, but potential of even advances. There’s a third, marketing looks at what is our market share. That means if you look at — our distribution market share is about 4.5%, which means our branches are 4.5% of country’s branches close to — getting to be close to 5%, but still 4.5% of countries branches, and our deposit market share is slightly above 10%.
So, we have a 2x of distribution to deposit market share. So, we look at to see where we are more, where we are less and what is the vicinity of the catchment area where we can get the deposit concentration into our bank. So, this analysis is done. And then there are two other constituents that enter at this stage. One is our infrastructure team that tries to scout around to see, is there a property available. Our credit analytics both from the liability and asset analytics are given something. Our marketing is proposing a particular location to go for it, our infrastructure team will come and say whether they can get it or not get it. Because that’s the availability space, which is the biggest constraint. So, I’m able to articulate that it is not about we know where we want to open the branches.
