Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Yes Bank Limited (NSE: YESBANK) Q3 2026 Earnings Call dated Jan. 17, 2026
Corporate Participants:
Prashant Kumar — Managing Director and Chief Executive Officer
Niranjan Banodkar — Chief Financial Officer
Dr. Rajan Pinter — Executive Director
Anurag Khurana — Individual Investor
Analysts:
Pankaj Agrawal — Analyst
Jayant Karote — Analyst
Jai Mundra — Analyst
Dev Dey — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to yes Bank’s Q3 FY26 earnings conference call. On the Management panel we have with us today Mr. Prashant Kumar, Managing Director and Chief Executive Officer, Dr. Rajan Pinter, 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 touchstone 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 Please note while all efforts will be made that no unpublished price sensitive information would get shared in case of an inadvertent disclosure, the same would in any case form part of the recording of the call.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 FY26 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.
Prashant Kumar — Managing Director and Chief Executive Officer
Thank you and a very good afternoon. To all of you. Welcome to our Quarter three earning calls. 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 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 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 155 crores due. To incremental gratuity provision on account of change in the wage definition under the. New labor costs as separately called out on page six of the investor presentation. Adjusting for this impact, the net profit. After tax is actually 1068 crores translating to an annualized ROA of 1%, a.
Guidance of achieving closer to 1% ROA. In the exit quarter of FY26 and for the full year of FY27. 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 sequential basis and actually is 1389 crores. This core operating profit has been driven. Primarily by expansion in our operating job. With 9.7% yuy growth in total income. Against 2% yui 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 cost well under control. Resulting in one of the lowest operating. Expense growth rates amongst peers which is also 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 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 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 FY24 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 FY24 to 6.9% in. Quarter three and bank remains well on. Track to further reduce it to below 5% of total assets by FY27 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 main segments of ESSENI 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 sub segments that deliver the most attractive risk adjusted return. At the end of quarter three, total. Advances at 2.57 lakh 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 to 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 disadvantage of the cost of fund. Specialist 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 I.e. The home loans and new car loans. As these product subsegments currently do not. Generate attractive risk adjusted returns given our cost of fund 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 spends.
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% YUI. Supported by improved risk metrics and better. Vintage performance in both secured and unsecured products. The products which witnessed a 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 a 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 multi product engine capable of generating assets, fee income and high velocity transaction flows.
During the year we have expanded our. Branch network to 1328 branches by adding 33 new branches in quarter three and overall 76 branches in the ninth month of current financial year against a full year target of 80 branches. This focus on branch network extension 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 Deposit stand at 2.93 lakh 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, bank has taken sharp rate actions. In the deposit space, in fact one of the highest amongst the peers. Despite this the bank has been able. To maintain this growth level and actually outperform the industry. On the CASA front secondary like in advances in deposit also the bank is prioritizing profitability and granularity.
Bank’s incremental deposit mobilization is increasingly retail. Length and CASA accretive. On average quarterly balance basis retail deposits. Have grown 12% YoY with robust momentum. In retail castle and within that retail. Current account balances have grown 19.4% YoY and retail saving balances have grown by 16.3% YuI 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% yui. This outpaced total deposit evidencing a continued.
Shift towards granular retail funding and retail. And branch led deposits now contribute approximately. 60% of total deposits growing at rates. Faster than that of banks Total deposits. Underscoring the strength of our branch network within saving accounts growth up to 1. Crore and individual cohort underscores franchise debt. Even as wholesale deposit remains subdued highlighting the resilience and quality of our retail deposit. India, the bank CASA and retail TD which reflects granularity in our deposit stand at 66.2% of total deposit 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 relative. To the rate cuts undertaken by RBI and competitors. This is a reflection of bank’s strong. Franchise and focus on accretion of better quality customers with higher NAVs.
Similarly, cost of funds has seen a. Reduction of 60 basis points to 5.9% from 6.5% last year driven by reduction in high cost borrowings which were used. To fund the bank’s legacy PSL related deposits. All of these aforesaid initiatives in PSL. Asset mix and liabilities have also resulted. In granular gradual improvement in our NIMS. Which will be the biggest driver of. Our ROA expansion journey. From here on The NIM for quarter. Three have come in at 2.6% which. Is a 12 basis point expansion on.
Quarter on quarter basis and 24 basis. Point 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 drag. 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 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 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 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 fresh. Slippages which were contained at 1050 crores. Against1248 crores in quarter two and 1458. Crores in quarter one. As a result, the bank level slippage. Ratio improved to 1.6% of the period. As advances against 2% in quarter two and 2.4% in quarter one.
This is the lowest slippage level seen. In last eight quarters which is primarily. Led by a sharp improvement in fresh. Slippages in the retail segment. Advances within retail the slippage have improved across both secured and unsecured portfolio. 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 at 1224. Crores and within this the recoveries from the fully provided security receipt at 555crores.
Takes our cumulative recoveries from security receipt. For the year. To almost 1113 crores. And in line with our guidance of. 1200 crores for the financial year. It is important to highlight that on account of P and 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 regarding 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 FY27 and. 1.5% in mid term 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.
Operator
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 Prudent Investment Advisors. Please go ahead.
Questions and Answers:
Pankaj Agrawal
Good afternoon sir.
Prashant Kumar
Good afternoon.
Pankaj Agrawal
Sir. Many congratulations for outstanding results. I have two more two questions. Basically these are two queries. The books that has been delivered to JM Florence 48,000 crores. So how much cumulative recovery has been done from that book? And is there any legacy slippage has been left. And secondly retail banking continue to slip. So like how many more quarters it will take so bank could be like you know getting profitability from retail banking. Sir. Thank you sir.
Prashant Kumar
First thank you so much for continue to remain interested in ESN franchise. To your first question on the recoveries from the JRC. Since we have assigned this to JRP. On a cash basis we have recovered. 7500 crores for yes paying okay, that is one thing. And we continue to have almost like 1800 crores of outstanding security receipt which. Would be we would be getting monetization of both security receipt as well as. The upside from the resolution of those assets. So still there are 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. And going forward we would 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 you 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 a 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 result and with. The turnaround in our asset quality cycle on the retail where we are seeing a lower slippage better recovery. So not only retail asset has breakeven. But would contribute I think significantly going forward in the profitability of the business.
Niranjan Banodkar
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, for the gratuity. So if you adjust for that and there are, there are certain internally we, you know, 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.
Pankaj Agrawal
Thank you very much, sir. And best pieces. We hope that yes bank will reclaim its earlier position very soon. Thank you, sir. Thank you so much
Prashant Kumar
For that.
Operator
Thank you. Thank you. Our next question is from the line of Jayant Karote from Axis Capital. Please go ahead.
Jayant Karote
Thanks for the opportunity. The first question is on the retail disbursals. So I see it’s slightly down qq. By around 400, 300 odd 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 2, 3/4 in the retail disbursals? That’s the first question. I’ll come back with the second one.
Prashant Kumar
Or you can I think complete your. Questions then we can respond.
Jayant Karote
Of course the second one is on casa. Absolute number seems to be not going up meaningfully for the past couple of quarters. So if you could also shed light over there. I know we have taken a lot of pricing actions. So again, when do we see that growth or uptake being meaningful on the absolute CASA balances?
Prashant Kumar
So I think there are two things like first in terms of retail disbursement, if you see with the confidence in. Terms of the underwriting and the collections. I think we have started seeing the. Disbursement which is 15% higher on YUI basis. We have also seen like since we are not there in the prime home loan and the new car loan and the gold loan, but we are seeing like 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 continuous 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 is doing much better than what the. Industry is doing, especially when I talk about the retail. So I think if we, 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 seem like it’s a tough. 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 saving 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.
Jayant Karote
Sorry, go ahead sir. Apologies.
Prashant Kumar
No, no, gently go ahead. Please go ahead with the question.
Jayant Karote
One more question. If the first quarter dispersals do improve, you know the way you are hinting at should we now think of next year growth closer to the mid teen number or how should we think about next year’s growth?
Prashant Kumar
So absolutely then like if we see in terms of the growth for the current quarter same sequential growth which is 2.9% 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% but definitely next year after I think able to solve. The issues in terms of better underwriting. And better risk policies control on the. Retail and also in terms of like 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.
Jayant Karote
Very helpful.
Prashant Kumar
Thank you sir. And all the rest
Niranjan Banodkar
Of. Jayanthar 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 our attention more to sequential numbers, both Kai and SA has 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.
Jayant Karote
This is very helpful. There is an average CASA growth of 5% is. I think, I think I missed that commentary. So this is very helpful. I think that puts my concerns to rest. Thank you guys.
Operator
Thank you. Our next question comes from the line of Sukrit Deep Patil from Eyesight Fin Trade Private Limited. Please go ahead.
Pankaj Agrawal
Good afternoon to the team. I have two questions. My first question
Operator
Is as the bank. Moves beyond stabilization, how do you see yes bank positioning itself for growth in. The retail and SME lending on while. Also. 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.
Niranjan Banodkar
Why don’t you complete your questions, we’ll respond to both.
Operator
Yeah, yeah, yeah. My second question is regards to profitability and margins. Again with profitability, 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 SMB business? Thank you.
Prashant Kumar
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 these kind of investment has not gone up. Actually we have been able to control. Within 2.5 to 2.6% and if you see even the current growth on the OPEX is one of the lowest in the industry and despite continue 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. So 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. So 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.
Coming to your first question, in terms. Of how we need to differentiate in. Terms of our SME and the digital. Side, I think we see on the SME we are showing one of the best loan growth. 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 the distribution network in terms of acquiring new customers.
Having a good turnaround time and meet. Their requirements, not only from the loan. Person, 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 facing 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, one I am not seeing on the low 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.
Operator
I think the last part of the guidance was very important and I. Wish the entire team best of luck. For the next quarter.
Dr. Rajan Pinter
Thank you.
Prashant Kumar
Thank you so much.
Operator
Thank you. The next question is from the line of JJ. Mundra from ICICI Securities. Please go ahead.
Jai Mundra
Yeah. Hi sir. Congratulations on a steady quarter. Sir, I have two questions. One is you specified the impact of gratuity under the new labor code, but the number seems very, relatively very high. If you compare other banks, those who. Have given the credit preliminary assessment. Any reason, sir? I mean other banks are saying only, you know, very maybe 1/4, 1/6 number of what you have reported. So any, I mean any, any more details you could share? Yes.
Prashant Kumar
So Jay, in terms of the. 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.
Jai Mundra
Correct.
Prashant Kumar
As per. At least as per our wages construction. Currently the basic Pay is around 30%. Of the total fixed pay. 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
Jai Mundra
Sure.
Prashant Kumar
Now if we take it from 30% to 50% and this is how we. Have worked our liabilities 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 workout as per our understanding. Make a one time provision so that the future earnings are not being impacted from any possible interpretation of the region.
Jai Mundra
Right? Sure. Thank you sir. And second question sir on smbc. I. Mean right now they are majority. They are one of the largest. They are the largest shareholder but not promoter and they also have through their four Indian branch. Right. So do you, do you see a possibility wherein four Indian branch of SMBC is amalgamated or you know convert into wholly owned subsidiary or how does it work? I mean can they run parallelly or you think there is going to be an impending change there or how should. One look at that?
Prashant Kumar
Ji, 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 item that got approval for a wholly owned subsidy. How things will shape up in the future. I think all of us together we will see that.
Jai Mundra
I’m not asking you to sort of give me any future thing. I wanted to check they can, I mean those four branches will. Can they run separately or they have to be sort of mixed with. Yes, bank current operation as of now, I mean nothing into future. They can run secretly or.
Prashant Kumar
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.
Jai Mundra
Sure, sure. And last and third on asset quality. Right. This quarter you have done exceedingly well. The SR redemption continues and the specific provisions are negligible. Right. But then if I look at last quarter, right. So I mean somehow it is creating a bit more volatility in the specific provision. If you look at last quarter there was a bump up and this quarter, you know there has been significant decline. So I mean fair to say that if you continue to receive let’s say 500 crores kind of redemption you can sustain the current negligible kind of credit cost or that can again have a.
Volatility in this line item.
Niranjan Banodkar
So Jay, if you look at our. I think the right metric to look Jay 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, you know in March we did see provisions of about 900 crores. They kind of came for the next two quarters at about 680 odd crores which has now come down to about 533 crores.
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.
Jai Mundra
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.
Prashant Kumar
No, I think they would be difficult to say. But I think today if you see. That out of 60001800 crores of security received now we are left with only 1800 crores. So 5000 crores have been fully resolved. And in addition to 5000 crores we. Have also received a upside of almost 2,500 crores. So I think if we see that. Part definitely for 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 1200 crore for.
The entire year we have already achieved 11, 11 crores. Okay, so. So I think fortunately like our estimations. 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.
Jai Mundra
Right, Understood. And Niranjan, if you have the number in rupees crore 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.
Niranjan Banodkar
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. You know, 180 crores. And credit cards would be about 140 crores.
Jai Mundra
Okay. And they are clearly down. Right. So if you have the corresponding number last quarter. So
Niranjan Banodkar
Last, last, last year this number was about. Same time was about 250 crores. Credit cards was about 190, 200 crores. You know we kind of continue to see improvements from those numbers.
Dr. Rajan Pinter
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 is, which gives a significant confidence on the, on the way things are spanning out similarly for retail assets. I don’t have here for only pl, but overall for retail 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 product including cards is showing a significant improvement.
Jai Mundra
Sure. And sorry, I did not catch this. Did you say NT rate or. Sorry, what is that? It’s like darling. Entry, entry into delinquency.
Dr. Rajan Pinter
Yeah, the check bouncing rate.
Jai Mundra
Sure, sure, sure. Okay. Thank you very much and all the very best. Thank you.
Operator
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 1. Our next question comes from the line of Dev Day from Horsepower Securities. Please go ahead.
Dev Dey
Can you hear my voice?
Operator
Dave? Sorry, there’s a disturbance on your line.
Dev Dey
Can you hear my voice? Hello?
Operator
We can hear you sir, but there’s a disturbance on your line.
Dev Dey
Okay. Okay. Management team.
Prashant Kumar
Yeah. Good afternoon.
Dev Dey
Splendid, splendid set of numbers. Again, my question is regarding the advanced growth. Okay. So are you confident to achieve with the advanced growth in the figure of team, high team or mid team?
Prashant Kumar
So I think we are not like 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. Okay. Without having a profitability. So I think mid teen or high teen is sometimes away. Okay. Immediately what we are looking for, the. Current file initial year would be somewhere around 8% and for next financial year we would like to be in line with the market.
Dev Dey
Okay. Sorry to interrupt. Dave,
Operator
We request you to please rejoin. The queue if you have any further questions.
Dev Dey
Okay. Thank you.
Operator
Our next question comes from the line of Nagesh Motamari, an individual investor. Please Go ahead. Nagesh, your line has been unmuted. You may proceed with your question.
Jai Mundra
Yeah, good evening. Am I audible?
Operator
Yes, we are audible.
Jai Mundra
Yeah. 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?
Prashant Kumar
So Nagesh, thank you so much. I think I recall like you were also participating in the earlier earning calls. I think fundamentally if you see like from where we started we have been able to show a quite a decent performance in very tough market. But definitely we would like to see. That going forward we will continue to perform much better and reward our investors.
Jai Mundra
Yes. Any rough tentative timeline, one year, two years or something like that.
Prashant Kumar
Because the equity
Jai Mundra
Is very high. Servicing this kind of an equity is difficult. I understand
Prashant Kumar
At this point of time. I think it’s very, very difficult. We need to discuss this part in terms of board and other. But I think at the right time. They would also come back.
Jai Mundra
Thank you very much and all the best, sir.
Prashant Kumar
Thank you. Thank you so much.
Operator
Thank you. Our next question is from the line of Anurag Khurana, an individual investor. Please go ahead.
Anurag Khurana
Yes, hi, can you hear me?
Prashant Kumar
Yeah, please go ahead.
Anurag Khurana
Mr. Prashant, 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 invest, it could attract investor like smbc. And secondly I am 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 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 100.
Prashant Kumar
Number. 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.
Anurag Khurana
I don’t want to even ask about SMBC because I think you’ve already indicated in your conference and you know we will let the things unfold at the 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 to unfold for it to unfold. And my best wishes to you and your team and once again, you know, you must be. I think I have a feeling that. You probably underappreciated at this point of time in the banking industry as the.
You know, the task on your hand. 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.
Prashant Kumar
Thank you. Thank you so much for your understanding and appreciation.
Anurag Khurana
All the best and thanks for this opportunity for participation. Thank you.
Operator
Thank you, ladies and gentlemen. We will take that as a last question for today. I would now like to hand the conference over to Mr. Prashant Kumar for closing comments. Over to you, sir.
Prashant Kumar
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 investors. Thank you so much and wish all of you and your families a very happy leave.
Operator
Thank you. This brings a conference call to an end. On behalf of YES bank, we thank you all for joining us. You may now disconnect your lines.