Ladies and gentlemen, good day and welcome to Yes Bank's Q3 FY 2026 Earnings Conference Call. On the management panel, we have with us today Mr. Prashant Kumar, Managing Director and Chief Executive Officer, Dr. Rajan Pental, Executive Director, Mr. Manish Jain, Executive Director, Mr. Niranjan Banodkar, Chief Financial Officer, and Mr. Sunil Parnami, Head of Investor Relations and Sustainability. Mr. Prashant Kumar will now give you an overview of the results, which will be followed by a question-and-answer session. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded.
Before we further proceed with this call, please note, while all efforts will be made that no unpublished price-sensitive information would get shared in case of an inadvertent disclosure, the same would in any case form part of the recording of the call. Further, some of the statements made on today's call could be forward-looking in nature. A note to this effect is provided in the Q3 FY 2026 results presentation itself, shared on the bank's website. I now hand the conference over to Mr. Prashant Kumar. Thank you, and over to you, sir.
Thank you, and a very good afternoon to all of you. Welcome to our quarter three earnings call. On this call, I am joined by the senior leadership team of the bank. Before we dive into the details, we trust that the new year has begun on a very positive and prosperous note for all of you and your families. Now, coming to results for quarter three, as we have been articulating over the past several quarters, Yes Bank's strategy is firmly anchored around profitable growth. And in that context, quarter three was a breakout quarter with an all-around strong core operating performance across profitability, asset quality, and granularity while maintaining a sharp focus on operational efficiency. Let me first start with the profitability. Despite the heightened competitive intensity and multiple rate cuts causing pressure on the margins, the bank has continued to strengthen its earning profiles.
For quarter three, the bank reported net profit of INR 952 crores, registering a strong growth of 55% YoY and 45% on a quarter-on-quarter basis. The reported annualized ROA for the quarter further improved to 0.9% against 0.6% in the previous quarter as well as the corresponding quarter last year. Moreover, the annualized reported ROA for nine months has now improved to 0.8% against 0.5% for nine months of the last financial year. It is important to call out that our reported net profit for quarter three had an impact of INR 155 crores due to incremental gratuity provision on account of change in the wage definition under the new labor codes, as separately called out on page six of the investor presentation. Adjusting for this impact, the net profit after tax is actually INR 1,068 crores, translating to an annualized ROA of 1%.
The guidance of achieving closer to 1% ROA in the exit quarter of FY 2026 and for the full year of FY 2027. Similarly, the bank also reported a sustained improvement in its pre-provisioning operating profits, adjusted for gratuity impact, which improved by 28.7% YoY and 7.1% on a sequential basis, and actually is INR 1,389 crores. This core operating profit has been driven primarily by expansion in our operating income with 9.7% YoY growth in total income against 2% YoY growth in OpEx, adjusted for gratuity impact over the same period. As a result, the cost-to-income ratio for the bank, adjusted for gratuity, was 66% against 67.1% in quarter two and 71.1% in quarter three last year.
Over the last few quarters, as we shifted the franchise towards higher profitability, the bank also kept costs well under control, resulting in one of the lowest operating expense growth rates among peers, which is also a key driver of our continued improvement in our cost-to-income ratio. The operating profit-to-asset ratio now stands at 1.2% for quarter three. At the same time, it is important to call out that the bank's four critical profitability levers continue to perform well. We are talking about the structural rundown of legacy RIDF balances, number one, the granular and profitability-centric deposit and assets engine, number two, the strict focus on cost optimization with productivity enhancement, number three, and lastly, the significant improvement in our asset quality. As we have been highlighting in the past, a critical component of our profitability improvement is the resolution of the legacy priority sector lending shortfall.
Since FY 2024, the bank has maintained 100% compliance across all PSL subcategories, ensuring that no incremental burden is added to our RIDF stock. As a result, our RIDF balances have continued their steady decline from a peak of 11% in FY 2024 to 6.9% in quarter three, and the bank remains well on track to further reduce it to below 5% of total assets by FY 2027 in line with our guidance. As these low-yielding RIDF assets mature, we are systematically also retiring our higher-cost borrowings as well as redeploying them into higher-yielding advances. Within advances, we continue to see sustained strong traction in our mainstay segment of SME and mid-corporate. However, within retail and corporate and institutional banking segments, we continue to remain selective and are strategically expanding our portfolio in those subsegments that deliver the most attractive risk-adjusted return.
At the end of quarter three, total advances at INR 2.57 crores with a healthy sequential growth of 2.9% quarter-on-quarter. However, on YoY basis, the growth came in at 5.2%. The advances mix retail segment around 47%, commercial and CIB segment each around 26%-27%. Though our headline credit growth currently lacks the system growth, we would like to highlight the following. The bank's commercial banking segment growth continues to be robust and amongst the best in the industry. In the corporate and institutional banking segment, despite the disadvantage of the cost of funds, preferably the government banks as well as bigger private banking peers, we are picking up decent traction, especially aided by our comprehensive product suite, which includes differentiated product offering of API and transaction banking, financial markets, and other advisory services.
In the retail segment, it is important to note that the bank has strategically chosen not to pursue aggressive growth in two major product categories, that is, the home loans and new car loans. As these product subsegments currently do not generate attractive risk-adjusted returns given our cost-of-funds position and the elevated competitive intensity in the market. Similarly, although gold loans have been one of the fastest-growing segments in the recent quarters, the bank has deliberately deprioritized this product for the time being. Excluding these three segments, retail growth momentum has been strengthening over the past two quarters, and this improving trajectory is expected to translate into higher book growth over the coming quarters. Within the retail banking advances, the credit card outstanding has grown by 21% YoY, driven by a 26% increase in the expense. Rural banking portfolio has also grown by around 17% during quarter three.
There is a sustained momentum in our retail asset disbursement, which increased 15% YoY, supported by improved risk metrics and better vintage performance in both secured and unsecured products. The products which witnessed YoY disbursement growth in excess of 20% included personal loans and both secured and unsecured business loans. Like I said earlier, our focus remains on profitable growth, being selective in low-yield segments and prioritizing products with superior risk-adjusted returns. Importantly, asset quality has seen a marked improvement due to robust underwriting, collections, and monitoring frameworks. As we have been consistently articulating over the past several quarters, our branches serve as the core fulcrum of our business, acting as the primary hub for both granular customer acquisition and holistic relationship management.
Our strategy is designed to leverage this physical network not just for gathering liabilities but as a multi-product engine capable of generating assets, fee income, and high-velocity transaction flows. During the year, we have expanded our branch network to 1,328 branches by adding 33 new branches in quarter three and overall 76 branches in the ninth month of the current financial year against a full-year target of 80 branches. The focus on branch network expansion is already yielding significant structural results, with internal sourcing from our branches now accounting for approximately 52% of our retail asset disbursement, a substantial increase from just 37% around two years ago. Our deposit franchise continues to demonstrate healthy momentum. Total end-of-period deposits stand at INR 2.93 crores, registering 5.5% growth. On quarterly average balance basis, bank's total deposits have grown by 5.7%. This growth needs to be considered from two perspectives.
First, the bank has taken sharp rate actions in the deposit space, in fact, one of the highest among the peers. Despite this, the bank has been able to maintain this growth level and actually outperform the industry on the CASA front. Secondly, like in advances in deposit also, the bank is prioritizing profitability and granularity. The bank's incremental deposit mobilization is increasingly retail-led and CASA-accredited. On average quarterly balance basis, retail deposits have grown 12% YoY, with robust momentum in retail CASA, and within that, retail current account balances have grown 19.4% YoY, and retail saving balances have grown by 16.3% YoY, reflecting deeper engagement and growing customer trust while also achieving a lower cost of funds. On an EOP basis, retail balances have grown by 9.1% YoY. This outpaces total deposit, evidencing a continued shift towards granular retail funding.
Retail and branch-led deposits now contribute approximately 60% of total deposits, growing at rates faster than that of the bank's total deposits, underscoring the strength of our branch network. Within savings accounts, growth up to INR 1 crore and individual cohort underscores franchise depth, even as wholesale deposits remain subdued, highlighting the resilience and quality of our retail deposit engine. The bank CASA and retail TD, which reflects granularity in our deposits, stand at 66.2% of total deposits against 62.6% in quarter three of last financial year. This outperformance in deposits in a tight liquidity environment is a testament to our branch-led deposit engine and our shift to a service-led fulfillment model.
Along with this, the bank has also maintained a strong focus on sustained reduction in its cost of deposit, which has reduced to 5.6% from 6.1% last year, driven by higher deposit rate cuts related to the rate cuts undertaken by RBI and competitors. This is a reflection of the bank's strong franchise and focus on acquisition of better-quality customers with higher NAVs. Similarly, the cost of funds has seen a reduction of 60 basis points to 5.9% from 6.5% last year, driven by a reduction in high-cost borrowings, which were used to fund the bank's legacy PSL-related deposits. All of these efforts and initiatives in PSL, asset mix, and liabilities have also resulted in gradual improvement in our NIM, which will be the biggest driver of our ROA expansion journey from here on.
The NIM for quarter three has come in at 2.6%, which is a 12 basis point expansion on quarter-on-quarter basis and 24 basis points on YoY basis. Both on quarter-on-quarter and YoY basis, the balance sheet mix improvement has more than offset the impact of interest rate cuts. On the asset side, a marked reduction in RIDF balances from over 11% to under 7% has reduced the negative gap, while the corresponding improvement in advances mix is further contributing to gradual NIM accretion. Similarly, on the liability side, a favorable funding mix shift, with a shrinking share of high-cost borrowings, coupled with a sustained rise in CASA, has led to relatively superior improvement in our cost of funds in the recent quarters and even amidst challenging industry backdrop. Moreover, the profitability traction of the last few quarters has led to a gradually increasing contribution of capital in the funding mix.
On the rate front, it is critical to appreciate that the bank has significantly contained the impact of interest rate cuts on the loan spreads through proactive action on the deposit rates. Here again, the deposit rate reduction achieved by the bank has been one of the highest among peers. Now, moving on to the next critical aspect, that is asset quality. Our growth, calibration, and proactive risk management efforts of the last four to six quarters, which included tightening of sourcing, underwriting, scorecards, and improving our collections infrastructure, including early interventions, have yielded a marked improvement in our asset quality outcome, with headline gross NPAs improving to 1.5% from 1.6%. Similarly, net NPAs remained stable at 0.3%, while the provision coverage ratio increased to 83.3% against 81% in quarter two and sharply higher compared to levels of 71.2% witnessed in quarter three of the last financial year.
Similarly, the quarter three was the second consecutive quarter of improvement in overall cash slippages, which were contained at INR 1,050 crores against INR 1,248 crores in quarter two and INR 1,458 crores in quarter one. As a result, the bank-level slippage ratio improved to 1.6% of the period-end advances against 2% in quarter two and 2.4% in quarter one. This is the lowest slippage level seen in the last eight quarters, which is primarily led by a sharp improvement in cash slippages in the retail segment advances. Within retail, the slippage has improved across both secured and unsecured portfolios. Similarly, there is a good improvement in the early delinquency overdue bucket of 31 to 90 days across the portfolio.
During the quarter, the aggregate recoveries and upgrades were at INR 1,224 crores, and within this, the recoveries from the fully provided security receipt were at INR 555 crores, taking our cumulative recoveries from security receipt for the year to almost INR 1,113 crores and in line with our guidance of INR 1,200 crores for the financial year. It is important to highlight that on account of P&L gains from the SR portfolio, while the net credit costs were negligible for the quarter, even normalized for this impact, if we were to look at just provision for NPAs, these stood at only 0.5% of the average asset against 0.7% for both quarter two as well as quarter three of the last financial year.
As regards to the non-interest income, the core fees are up by 9.8% YoY, driven by strong traction in fee income streams, which includes the processing fee, the third-party distribution, and general banking. So, if I have to summarize strategically, the bank's profitability is being driven by margin expansion through RIDF rundown, CASA mix improvement, and deposit price action. Going forward, we expect to see benefit from retail mix improvement on the asset side. Number two, sustained growth in fee income, leveraging digital platforms and cross-sell opportunities. Number three, our continued focus on cost optimization and productivity enhancement, which has helped us achieve improvement in cost-to-income ratio and should further drive operating leverage as income growth accelerates. And lastly, normalization of credit cost, particularly in the retail segment.
Looking ahead, Yes Bank remains committed to its strategic roadmap of profitable growth, targeting full-year 1% ROA for FY 2027 and 1.5% in midterm, with growth outlook which will be in line or marginally higher than the industry. Having said that, at the same time, we will calibrate the growth depending on our profitability objectives as well as opportunities in the market. Once again, I would like to thank you so much for your continued support, and now we can take your questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question.
Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Pankaj Agrawal from Prudence Investment Advisors. Please go ahead.
Good afternoon, sir.
Good afternoon.
Yeah, good afternoon. Sir, many congratulations for outstanding results. I have two questions. Basically, these are two queries. The books that have been delivered to JM Florence, INR 48,000 crores. So how much cumulative recovery has been done from that book? And is there any legacy slippage that has been left? And secondly, retail banking continues to slip. So how many more quarters will it take so the bank could be getting profitability from retail banking? Thank you, sir.
So Pankaj, first, thank you so much for continuing to remain interested in Yes Bank franchise.
To your first question on the recovery from the JRC, since we have assigned this to JRC, on a cash basis, we have recovered INR 7,500 crores for Yes Bank. Okay? That is one thing. And we continue to have almost like INR 1,800 crores of outstanding security receipt, which would be getting monetization of both security receipt as well as the upside from the resolution of those assets. So still, there are a lot of juice available in that portfolio. Second, in terms of your question on the retail, I am very happy to report that this quarter, our retail businesses have breakeven. Okay? And going forward, we are going to see a significant contribution in the profitability of the bank from the retail.
Because if you like, just like I would like to bring to your notice that for the last four, five years, especially after COVID, there was a time where we were continuously investing on the retail side. And when you invest, it takes time to have returns out of that. And in between, the industry also faced a very adverse credit cycle on the retail. I think not only our investment has started yielding the right results, and with the turnaround in our asset quality cycle on the retail, where we are seeing a lower slippage, better recoveries. So not only retail asset has breakeven, but would contribute, I think, significantly going forward in the profitability of the bank.
So if I can just clarify, I think what Prashant is saying.
So when you look at our segmental results, you will find that the retail will still have a negative number, but that is also because we've taken a one-time charge for the gratuity. So if you adjust for that, and there are certain internally, we report that as part of retail, but for the segmental disclosure, we are classifying them as outside retail. If we build that back into the retail business, we have broken even. I think that's the important point we wanted to make.
Thank you very much, sir. And best wishes. We hope that Yes Bank will reclaim its earlier position very soon. Thank you, sir.
Thank you so much for that.
Thank you, sir.
Thank you. Our next question is from the line of Jayanth Karote from Axis Capital. Please go ahead.
Thanks for the opportunity. The first question is on the retail disbursals.
So I see it's slightly down QoQ by around INR 400 crores or INR 300 crores. I was under the impression that given the asset quality trajectory, this should be moving up. So why this sort of, I know it's not a sharp decline, but why this calibration over here, and how should we think about the next two, three quarters in the retail disbursals? That's the first question. I'll come back with the second one. Thank you. I want to complete.
Or you can, I think, complete your question, then we can respond.
Of course. So second one is on CASA. Absolute number seems to be not moving up meaningfully for the past couple of quarters. So if you could also shed light over there, I know we've taken a lot of pricing actions. So again, when do we see that growth or uptick being meaningful on the absolute CASA balances?
So I think there are two things. First, in terms of retail disbursement, if you see with the confidence in terms of the underwriting and the collection, I think we have started seeing the disbursement, which is 15% higher on YoY basis. We have also seen, since we are not there in the prime home loan and the new car loan and the gold loan, but we are seeing every month the disbursement happening at a higher level. So I think the current quarter should be much better than what we have seen in the past. But I think this is a continued path where the trend is absolutely improved, continuous improvement path. So we'll see, I think, much better on this. On your CASA, I think I would just like to make one point.
Today, if you see our overall deposit growth and the deposit growth on the CASA, okay, is doing much better than what the industry is doing, especially when I talk about the retail. So I think if you need to grow on the overall liability side at a rate, okay, which would be higher than the industry, then it means for improving the CASA ratio further, you need to grow on CASA much higher than the overall deposit growth, which in the current times, if we see the trend across the industry, we feel like it's a tough thing. But I think the important part is that we have taken actions in terms of reducing our rate of interest on savings bank, where the cost of savings bank has come down by almost 150 basis points, and despite this, we are improving.
So I think it would be like a balanced approach where we would continue to have the rate action and have the growth also.
And since I've been sorry, go ahead. Sorry. Apologies.
No, no. Jayanth, please go ahead.
Please go ahead with the question. If I may, please give me one more question. If the third-quarter disbursals do improve the way you are hinting at, should we now think of next year's growth closer to the mid-teen number, or how should we think about next year's growth?
So absolutely, Jayanth, if we see in terms of the growth for the current quarter, sequential growth, which is 2.9%, okay, we are very confident that we would be sequentially, we would be able to grow more than 3% in the current quarter, which will take our credit growth to around 8%. Okay?
But definitely next year, after I think we are able to solve the issues in terms of better underwriting and better risk policies controlled on the retail, and also in terms of all the, I would be saying, the high-risk corporate loans have already been repaid, I think we would be definitely targeting a loan growth, which would be more or less in line with the market, barring, I think, if we need to exclude the growth, especially on the products like prime home loan and the car loan.
Very, very helpful. Thank you, sir. And all the best.
Jayanth, I have Niranjan here. I just wanted to maybe add to what Prashant said on the CASA.
So I just wanted to say that, look, one, we did call out that in September, sometimes there are certain transient flows that kind of go in on the deposit side, especially on the current account side. And therefore, if I just bring your attention to the average performances here, both on current account and savings account at the full bank level, we have seen almost like an 8% increase in current account YoY and about 17% in savings account YoY. If I bring that attention more to sequential numbers, both CASA and SAA have grown by 5% each. So yes, sometimes we do see some noise that kind of comes through the reported numbers. But the fact that current account actually has sequentially grown 5% has also been one of the contributors from a net interest margin standpoint as well. So I just thought I would clarify on that.
This is very helpful. The average CASA growth of 5% is, I think I missed that commentary. So this is very helpful. I think that puts my concerns to rest. Thank you, guys. You're not the best.
Thank you. Our next question comes from the line of Sukrit D. Patil from Eyesight Fintrade Private Limited. Please go ahead.
Good afternoon, team. I have two questions. My first question is, as the bank moves beyond stabilization, how do you see Yes Bank positioning itself for growth in the retail and SME lending while also expanding digital banking? Could you share your vision on how the bank will differentiate itself in the next few years against larger private sector peers? That's my first question. I'll ask my second question after this. Thank you.
Why don't you complete your questions? We'll respond to both.
Yeah. Yeah. Yeah.
My second question is in regards to profitability and margins. Again, with profitability improving, how are you thinking about balancing cost discipline with the investment needs for tech and branch expansion over the next few years, and what steps are you taking to ensure the margins remain stable while the bank scales itself and the SME business? Thank you.
So I think first responding to your second question in terms of investment for future and also at the same time maintaining a balance between the profitability. So I think if you see last four, five years, we have heavily invested in both technology and our retail network expansion. And despite this, we have been able to control our cost-to-asset. If you see our cost-to-asset, despite this kind of investment, has not gone up. Actually, we have been able to control within 2.5%-2.6%. Okay?
If you see even the current growth on the OpEx is one of the lowest in the industry. Despite continuing to invest in terms of opening new branches, better digital capabilities, so I think we have been able to reach that inflection point where whatever we have invested in the future, it has started giving the results to us. It's a cycle where we would continue to invest for the future, and we also get the rewards for our investment of the past. I think we are quite confident that we would be able to invest also, and we would be able to have a balance between the cost as well as on the profitability side. Okay?
Coming to your first question in terms of how we need to differentiate in terms of our SME and that is digital side, I think if you see on the SME, we are showing one of the best loan growths. And even if you see our total advances, 29.3% of our advances are actually the SME advances, which is again one of the highest in the industry. So I think this is one area on the SME which offers a huge opportunity in our country. And we have a very good understanding and a distribution network in terms of acquiring new customers, having a good turnaround time, and meet their requirements, not only from the loan purpose, but also in terms of solutions coming from the digital and the tech side. So I think this is one area where we would like to continue to outpace the industry.
On the retail side, I think currently our strategy is definitely in terms of chasing a profitable growth, and we would not like to grow in those asset classes where the returns are not as per the risk. But definitely, we are looking for some products on the retail where we are currently not there in terms of building our capabilities and start growing on this. I can name just two things. Maybe one I'm not seeing on the loan side, but definitely on the wealth side is one area where we would like to explore and build our strength in this side. Plus, we may also look in terms of if the products like gold loan offer a good opportunity, how we can start building our capabilities for that product also.
I think the last part of the guidance was very important, and I wish the entire team best of luck for the next quarter. Thank you.
Thank you so much.
Thank you. The next question is from the line of Jai Mundhra from ICICI Securities. Please go ahead.
Yeah. Hi, sir. Congratulations on a steady quarter, sir. I have two questions. One is, you've specified the impact of gratuity under the new labor code, but the number seems relatively very high if you compare other banks, those who have given the preliminary assessment. Any reason, sir? I mean, other banks are saying only maybe 1/4, 1/6 number of what you have reported. So I mean, any more details you could share there? Hello?
Ladies and gentlemen, the line for the management seems to have disconnected. Please stay with us while we reconnect with the management.
Ladies and gentlemen, we thank you for your patience. We have now reconnected with the management.
And Jayanth, you were able to hear me? Hello? Sir, hello.
Yeah, I can hear you now, sir.
Okay. Okay. I think we were disconnected in between. So Jayanth, in terms of our understanding of the wage bill, is talking about that you need to calculate gratuity, assuming that your wages have to be at least 50% of your fixed pay. Okay? Correct. As per our wages construction, currently the basic pay is around 30% of the total fixed pay. Okay? So if we have to define as per the new wage bill, then the gratuity has to be worked on the basis of if the basic becomes almost 50% of that. Sure.
Now, if we take it from 30% to 50%, and this is how we have worked our liability, and we have been very, very, say, I would be saying, careful in terms of why not to make provisions, instead of the coming quarters, we continue to have a negative impact. So basically, the strategy was more in terms of work out, as per our understanding, make a one-time provision so that the future earnings are not being impacted from any possible interpretation of the wage bill.
Right. Sure. Thank you, sir. And the second question, sir, on SMBC, I mean, right now, they are one of the largest shareholders, but not promoters. And they also have their four Indian branches. Right? So do you see a possibility wherein four Indian branches of SMBC is amalgamated or converted into only one subsidiary? Or how does it work?
I mean, can they run parallelly, or do you think there is going to be an impending change there, or how should one look at that?
Jayanth, my understanding is almost similar to what understanding you would be having on this. Nothing different. Okay? They are currently like a 24.99%. We have also seen a new write-up that got approval for a wholly-owned subsidiary. How things will shape up in the future, I think all of us together, we will see that.
Sure. No, no, sir. I'm not asking you to sort of give me any future thing. I wanted to check. I mean, those four branches, can they run separately, or they have to be sort of mixed with Yes Bank's current operation as of now? I mean, nothing into future. They can run separately, or they have to be?
Because this is the first time this is happening in the Indian banking space, very, very difficult to give a definite answer in terms of having a complete understanding how the regulator would think about it. So I think at this point of time, let's see how the whole thing would take shape in future.
Sure. Sure. And sir, on asset quality, right, this quarter, you have done exceedingly well. The SR redemption continues, and the specific provisions are negligible. Right? But sir, if I look at last quarter, right, so I mean, somehow it is creating a bit more volatility in the specific provisions. If you look at last quarter, there was a bump up, and this quarter, there has been significant decline.
So I mean, fair to say that if you continue to receive, let's say, INR 500 crores kind of an SR redemption, you can sustain the current negligible kind of a credit cost, or that can again have a volatility in this line item.
So Jayanth, if you look at our, I think the right metric to look, Jayanth, is really the NPA provisioning. Because as you rightly said, SR provisioning can at times be unpredictable. It is not a function of what we are doing. It's a reflection of what the asset reconstruction company is doing, although we keep getting cash flows from them. So I think just on the NPA provisioning, the credit cost, in March, we did see provisions of about INR 900 crores. They kind of came for the next two quarters at about 680 odd crores, which has now come down to about INR 533 crores, right?
And it's also clearly coinciding with the way our core asset quality performance has improved. So slippages have also come down. Now, on the security receipts, we did see a dip last quarter. We did see some increase. Now, I think that's the way some of these things will play out. But on the whole, we've always said that we had guided last year that our net credit cost, non-tax provisions to assets, should be below 50 basis points for the full year. I think we're happy to state that. I think that's something we should be able to continue regardless of the volatility that will happen during different quarters.
Right. Sure. And if you have any rough cut range of this redemption over the next, let's say, two to four quarters from this SR portfolio?
No, I think there would be difficult to say, but I think today, if you see that out of INR 6,800 crores of security receipts, now we are left with only INR 1,800 crores. INR 5,000 crores have been fully resolved. And in addition to INR 5,000 crores, we have also received a side of almost INR 2,500 crores. So I think if we see that part, definitely, with the remaining books, things would become more difficult, and it would take more time. But I think we have given a guidance for this year in terms of having a recovery of INR 1,200 crores for the entire year. We have already achieved INR 1,100, 11 crores. Okay? So I think, fortunately, our estimation on this part has been proved correct. But I think next year onwards also, we would be seeing maybe recoveries in the range of 800 kind of things.
Right. Understood. Niranjan, if you have the number in rupees crores for PL and credit card slippages, because I see that there has been a lot of improvement in the retail slippages. I mean, just that number in absolute crore will be very, very helpful.
If you can bear with me for 30 seconds, we will have that number. So PL, you're saying the gross slippage number is about 180 crores, and credit cards would be about INR 140 crores.
Okay. And they are clearly down, right? So if you have the corresponding number last quarter?
Yeah. Yeah. So last year, this number was about same time was about INR 250 crores. Credit cards was about INR 190 crores- INR 200 crores. So you kind of continue to see improvements from those numbers. Yeah. Just to add, Rajan here, just to add to this, one is the gross slippage number.
The other one also is to look at the entry rates, right? So entry rates in cards from 20% is down to around 12%, right, which gives a significant confidence on the way things are panning out. Similarly, for retail assets, I don't have here for only PL, but overall for retail assets, it is down to 8.7% as compared to a high of around 10.7% a couple of quarters away, right? So both in terms of entry rates, resolution, and slippage and recovery, each of the products, including cards, is showing a significant improvement.
Sure. And sorry, I did not catch this. Did you say entry rate or sorry, what you said is like entry into delinquency?
Yeah. The check-bouncing rate. Entry into the exposure. Yeah.
Sure. Sure. Sure. Okay. Thank you very much and all the very best.
Thank you.
Thank you.
Ladies and gentlemen, you are requested to please restrict yourselves to one question per participant. If you have any further questions, you may rejoin the queue. Participants who wish to ask questions may press star and one. Our next question comes from the line of Dave Day from HorsePower Securities. Please go ahead.
Good afternoon, gentlemen. Can you hear my voice?
Dave, sorry, there's a disturbance on your line.
Can you hear my voice? Hello?
We can hear you, sir, but there's a disturbance on your line.
Okay. Okay. Good afternoon, management team. Yeah. Good afternoon. Yes. Congratulations on the splendid set of numbers again. My question is regarding the advance growth. Okay? So are you confident to achieve the advance growth in the figure of high teen or mid teen?
No, I think we are not aspiring for that kind of loan growth. Okay?
We are more in terms of a profitable loan growth. We don't want to simply grow for a top-line purpose without having a profitability. So I think mid teen or high teen is sometimes a way. Okay? Immediately, what we are looking for the current financial year would be somewhere around 8%. And for next financial year, we would like to be in line with the market.
And can you say that?
Sorry to interrupt, Dave. We request you to please rejoin the queue if you have any further questions.
Okay. Sure. No problem. No problem. No problem.
Our next question comes from the line of Nagesh Mottamari, an individual investor. Please go ahead. Nagesh, your line has been unmuted. You may proceed with your question.
Yeah. Good evening. Am I audible? Yes, we're audible. Yeah. I think congratulations for an excellent set of numbers in this competitive market conditions.
I just have a small question. As a retail individual investor, when can we expect a nominal simple dividend from the bank in future?
So Nagesh, thank you so much. I think I recall you were also participating in the earlier earnings call. I think fundamentally, if you see from where we started, we have been able to show quite a decent performance in a very tough market. But definitely, we would like to see that going forward. We will continue to perform much better and reward our investors.
Yes. Any rough tentative timeline? One year, two years, something like that? Because the equity is very high. Servicing this kind of an equity is difficult, I understand.
Right at this point of time, I think it's very, very difficult. We need to discuss this part in terms of board and others. But I think at the right time, we will also come back.
Thank you very much and all the best, sir.
Thank you. Thank you so much.
Thank you. Our next question is from the line of Anurag Kuranov, an individual investor. Please go ahead.
Yes. Hi. Can you hear me? Yeah, Anurag. Please go ahead. Mr. Prashant Kumar, first of all, my appreciation. I hope my words don't sound bad, but you came in at a time and adopted an orphan and grew it to this level. So to you personally and to everybody else who turned around Yes Bank, that it could attract investors like SMBC. And secondly, I'm joining this for the first time, your conference, but I am a little difficult investor. I don't want to get satisfied with the dividend, but I have my own estimation of the stock price with this SMBC coming in.
So when can you, and I know you have already said that you're looking for profitable growth on your loan book. So when can you, or when can we see a doubling of your loan book so that my stock price can go up to INR 100 croces?
No, but I think, first of all, thank you so much for understanding and appreciating the performance of the bank. I think what we also need to say be conscious of that ultimately, what is the expectation? As per our understanding, the expectation from the investor is always in terms of profitable growth. Instead of maybe doubling the loan book where you don't earn and you come across the credit issues going forward. So I think for any bank, it's very, very important to diversify the loan portfolio, have some time in terms of understanding, doing it better, gradually grow.
and this is exactly what we are doing. If you see continuously, every quarter has been better than the previous quarter. I think we would still like to be very, very calibrated, cautious, okay? Would not like to do anything which can create any pain point for our investors or the depositors. And we are quite, I would be saying, confident and feel happy that we are absolutely moving on the right track.
I don't want to even ask about SMBC because I think you've already indicated in your conference, and we will let the things unfold at their natural pace as per your own understanding internally what you have with them. But I think it's a beautiful chapter which we are waiting for it to unfold. And my best wishes to you and your team.
And once again, you must be, I think I have a feeling that you're probably underappreciated at this point of time in the banking industry as the task on your hands five years back was very, very difficult. So I'm trying to bring in this point, although it may not matter to people who are listening to this. But I know how difficult it is to keep a team motivated and to bring them to a level of semblance. So best wishes for your group.
Thank you. Thank you so much for your understanding and appreciation.
All the best, sir. And thanks for this opportunity for participation. Thank you. Thank you.
Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to Mr. Prashant Kumar for closing comments. Over to you, sir.
Again, thank you so much for your continued interest in Yes Bank, attending the conference call, and asking all the questions. I can only assure you that as a bank, we would continue to work for showing a better performance and to the benefit of all our depositors and the investors. Thank you so much and wish all of you and your family a very happy New Year.
Thank you. This brings the conference call to an end. On behalf of Yes Bank, we thank you all for joining us. You may now disconnect your lines.