Yes Bank Limited (YESBANK) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to YesBank's Q4 FY26 results conference call. On the management panel, we have with us today Mr. Vinay M. Tonse, Managing Director and Chief Executive Officer, YesBank, Dr. Rajan Painter, Executive Director, Mr. Manish Jain, Executive Director, Mr. Niranjan Banudkar, Chief Financial Officer, and Mr. Sunil Parnami, Head of Investor Relations and Sustainability. Mr. Vinay M. Tonse will now give you an overview of the results, which will be followed by a Q&A 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 then zero on your touchtone phone. Please note that this conference is being recorded. Participants are requested to ask questions pertaining to the bank's Q4 FY26 results only. For any other information, you may reach out to the corporate communications team separately. I now hand the conference over to Mr. Vinay M. Tonse. Thank you, and over to you, sir.

Thank you very much, and at the outset, our apologies for getting into this meeting a little late. We got stuck in some other meetings today. Sincere apologies for that. But formally to start, good afternoon, everyone, and thank you for joining us for the S-Bank Q4 and the full year FY26 earnings conference call. While I have interacted with many of you in my earlier role, this is my first earnings interaction as the MD and CEO of the S-Bank, and I am very pleased to join you today along with my senior leadership team, and I also look forward to building a long-term engagement with all of you. As part of my opening remarks, I will briefly cover my first impressions of the bank, our take on the current operating environment, and key highlights of our quarter four as well as the full year FY26. But at the outset, I would like to express my sincere appreciation for Mr. Prashant Kumar, my predecessor. Over the past several years, he led S-Bank through a multi-year and truly unique transformation. His leadership was pivotal in stabilizing, strengthening and also re-anchoring the institution. I must also bring in here mention of the strong support of the government of India, the Reserve Bank of India, and the State Bank and other banks who got in together to bring in the reconstruction of the S-Bank, and also, last but not the least, the Board of Directors. Which guided us during this period and also our customers and employees who have a huge source of strength for us. Thanks to these collective efforts, the bank I now have the responsibility to lead stands on a very stable foundation. Even in challenging periods, the S-Bank brand remained relevant and trust was rebuilt gradually through steady execution. Today, the bank operates on a stronger base with resilient asset quality, a more granular franchise, a strengthened deposit engine, and renewed stakeholder confidence supported by strong shareholders such as SMBC, SBI, and Advent International. Over the last few weeks, I have spent meaningful time across teams and functions. Listening, understanding, and also observing the nuances of how this bank operates. My early interactions have highlighted the steady commitment of the S bankers who have been supportive through challenging periods and contributed to restoring confidence. I have also seen a strong alignment of purpose across all the stakeholders. That's amongst employees, customers. Regulators, the board, and investors, which is very reassuring for the path ahead for us. Alongside this, our modern technology platform, the leadership in digital payments ecosystem we have, and collaborative embedded banking capabilities provide useful strengths as we enter the next phase of growth. Going forward, we will build on what is working well. Strengthen areas that require more attention and pursue growth that is thoughtful, calibrated, and also sustainable. Execution, discipline, and stakeholder trust will remain central to how we operate. Looking ahead, we will continue to invest steadily across four basic areas – our people, our product, our processes, and technology platforms. These remain important to strengthening the bank over time. We will also keep building on the power of one S-Bank to ensure a consistent customer experience across businesses. In addition, our ongoing collaboration with SMBC provides helpful strategic support particularly in corporate and cross-border banking. Now, let me talk about the macros as they are evolving. We are closely observing the fast-evolving global environment, including the AI landscape, and the geopolitical conflicts impacting global growth, supply chains, energy and freight costs, and also the inflation and interest rate trajectories. Against this backdrop, India remains comparatively resilient, supported by steady domestic demand and a stable financial system. As a bank, we remain attentive to these trends and their potential implications for our businesses. To the third part now, I would now share some of the key highlights of our quarter four and also the full year FY26 performance. Despite the ever-evolving macro environment, the bank closed FY26 with stable and improving financial performance. Underscoring our progress on profitability, productivity, and balance sheet quality. For the full year FY26, net profits to date, Rs. 3,476 crore, up 44.5% over FY25. The net profit of INR rupees 2,406 crore supported by continued improvement in our operating performance. And RYA for the full year was at 0.8% versus 0.6 in FY25. Number two, for the quarter four, the bank reported a net profit of Rs. 1068 crore, reflecting a strong growth of 44.7% net profit over the net profit of Rs. 738 crores in the corresponding quarter of the previous year. In line with our guidance, bank reports ROA for the quarter of 1%. Number 3, talking of our net interest income and NIM, NII for the quarter was Rs. 2638 crore, which was up 15.9% YOY. Despite adverse interest rate environment and elevated competitive intensity in deposits, Our NIM saw an improvement of 10 basis points quarter on quarter and 20 basis points year on year and came in at a number of 2.7%. Even for the full year, the NIM at 2.6% improved 20 basis points vis-à-vis FY25 and in line with our guidance given in Q4 of FY25. Our margin improvement was supported by multiple factors, namely front loading of our deposit reprising that happened last April, continued outperformance in CASA, and sustained reduction in high-cost borrowings, mirroring continued rundown of the RIDF and PSL-related mandated deposits. Net interest income for FY26 at Rs 9,776 crore grew 9.3% year on year. In line with our guidance, in FY26, the bank had a second straight year of 100% compliance in PSL and all of its subcategories, which resulted in notable reduction of RIDF and other mandated deposits to 6% of total assets vis-à-vis 9% as at the end of FY25. That was 6% now against 9% last year. The bank continues to see a gradual increase in its organic accretion of PSL across subcategories. Going forward, the bank remains well on track to reduce these deposit balances to Below 5% by Fiscal 27, which will aid our margins and profitability. As regards the non-interest income, the bank saw continued momentum across all diverse and granular fee income streams. Non-interest income for the FY26 at Rs. 6759 crore grew 15.4% year on year. We continue to strengthen our fee momentum by deepening client engagement, improving the cross-sell intensity in wholesale banking, and scaling our digital fee engines. This includes driving higher penetration of forex, trade, and CMS flows within our corporate relationships. While broadening retail fee contributions through pre-approved programs, cards, payments, and wealth offerings. Over the last three years, the bank has seen a meaningful increase in its non-interest income to average assets ratio, which has increased from 1.1 in FI23 to 1.5% this year, FI26. Cost-to-income ratio for FI26 also saw a big improvement. To 66.7% versus 71.3 in FY25. That's 66.7 now versus 71.3 last year. The exit for the financial year came in even lower with the cost to income ratio coming at 63% vis-à-vis 66.1 Q3 FY26 and 67.3 the same quarter last year. The decline has been in line with our broad guidance to gradually keep bringing down our cost to income ratio and we expect the momentum to continue. Improving core profitability remains a central theme for us. For FY26, the bank had a PPOP, Pre-Provisioning Operating Profit of Rs. 5,506 crore, which grew 29.4% year on year. FY26 PPOP as a percentage to average total assets improved to 1.2% versus 1% for FY25 and 0.9% in FY24. The PPOP for the quarter was Rs.1618 crore, up 23.1% year-on-year, supported by income growth, outpacing expenses growth. Reflecting sustained expansion in our operating jaws. Asset quality remained strong during the quarter. As at 31 March 26, the bank reported gross NPA and net NPA of 1.3% and 0.2% respectively, the lowest ever that we have seen in the last 24 quarters, and amongst the top quartile in our peer set. Sequentially, the GNPA and NNPA ratio improved by 20 and 10 basis points respectively. Further, the provision coverage ratio, the PCR, continues to remain healthy at 81.9%. The resolution momentum remained strong. The bank had total recoveries and upgrades of Rs. 4795 crore in FY26, which included recoveries from security receipts of A little more than Rs.1550 crores, against our guidance of Rs.1200. In line with the rundown in the face value of the security receipts, we expect recoveries to the tune of Rs.800 to Rs.1000 crores from SRs in FY27. Excellent. The bank continues to reduce its overture exposures. Strengthen early warning mechanisms and enhance the underwriting standards and the collection infrastructure. Gross slippage ratio in FY26 has improved to 1.8% versus 2.1% last year. This has been led by improvement in the retail asset slippages, which improved in FY26 to 3.5% from 4% in FY25, with the exit rate even lower at 2.8%. Quarter 4, this quarter 4 versus 3.4% the last quarter. Retail slippage for Q4 at Rs.888 crore is at its lowest in the past nine quarters with improvements visible across both secured and unsecured products. Together, these trends underscore the resilience of our asset book and the effectiveness of our ongoing credit risk management efforts. Overall credit costs remained low at 0.2% for the full year FY26 versus 0.3% last year. Credit costs for the Q4 was at 0.17%. Now moving over to the balance sheet highlights. Growth saw a marked uptick during the quarter, aided by acceleration across business segments. Total advances registered a growth of 11.1% year-on-year to Rs. 2.73 lakh crores. Retail disbursements in particular have gained significant momentum, resisting 41% year-on-year growth in Q4 FY26. We remain focused on balanced and profitable growth across retail, commercial, and wholesale businesses, supported by disciplined risk selection and effective pricing. We crossed two critical milestones in our deposits franchise during this quarter. While overall deposits crossed the milestone of 3 lakh crores, the Kaza balances crossed the milestone of 1 lakh crore. Total deposits increased 12.1% year on year to Rs. 3,18,000 crores with a strong contribution from retail and translate deposits which grew 13.5% year on year and comprised 58.4% of the total deposits. Casa balances grew 14.9% year-on-year to Rs. 1.12 lakh crore. And even on a QB basis, the Casa growth was strong at 11.2%. And the Casa ratio also improved 80 basis points year-on-year and 110 basis points QOQ to 35.1%. Stands now at 35.1%. Strengthening of the liability franchise remains a priority for the bank. We are working to reduce reliance on the bulk savings bank balances, improving branch-led and digital-led acquisition funnels, enhancing customer journeys, and sharpening the pricing strategy, ensuring competitive positioning without compromising stability. Continued improvements in digital onboarding, the KYC processes, and the RM productivity have enabled us to capture higher primary banking share from our target customer segments and are the key drivers of our continued outperformance to the industry in CASA. Our credit to deposit ratio, the CD ratio, improved to 85.7% from 88% in The Q3, FY26, and 86.5% in Q4, FY25. Our capital adequacy and liquidity levels remain comfortable to support the growth aspirations of the bank going forward. A few other updates from our side. I am pleased to welcome on board Mr. S. Anantaraman as the Chief Risk Officer of the Bank. He is an industry veteran with over three decades of experience with rich expertise in the risk management domain. We also opened 82 new branches during the year, which was in line with our guidance at the start of the year. Our ESG ratings, which are already the best in the banking industry in India, continue to see improvement across agencies such as SMP, FTSE, and the ISS stocks. S-Bank also has been recognized as a great place to work for the fourth consecutive year. The bank has rolled out a new business offering in the form of S-Grandeer, which is the premium banking suite, developing and delivering business solutions, digital integration, and operational benefits for modern enterprise. To conclude, as we enter FI27 with stability and renewed momentum, We will be continuing to invest in our people, products, processes, and technology, deepen customer relationships across segments, focus on building a futurity bank with very strong resilience, and finally, I thank you once again for joining us today. We can now take questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Jayant Karote from Axis Capital. Please go ahead.

Hello, I'm Aadabal. Yes, hello, I'm Aadabal. Congratulations, sir, for a good set of results. The first question will be going ahead, given that I know it's been a short stint so far, but how are you looking at growth in the bank for the next one year? Is there anything you're waiting for to accelerate in terms of any of the balance sheet metrics? Or do you think we can start aiming for that 15% plus growth firstly on that? And second, of course, is that if you could help us with the average KASA growth in 4Q. And compared to the loan growth made for the KASA has held up despite the rate cuts, but how do you sort of grow that in line, maybe in like 14-15% on an average basis? So how do you address that problem? These two questions.

Thanks, Jayant. Hi. So, I'll start with the Kasa growth on the average basis. So, both Ka and Sa have sequentially grown in the range of about 4%. In fact, Ka's sequential growth has been slightly more than 4%, but blended is about 4%. And if I actually look at term deposits, And I'm excluding the CDs that we ended up raising as well. The term deposits also have grown at about 4%. So if I were to characterize the growth for Q4 across the deposit, it's broadly anchored around a 4% CASA and DEAL. So I think we're kind of maintaining the CASA ratio at least from an average performance. If I look at the year-on-year growth on CASA, that is anchored at around 11% growth rate, on an average, again, we are talking about average Q4. which you started with was on next year's call. a franchise that indeed Thank you. We do believe that that momentum should certainly continue and not just in certain products or segments. I think what we are now talking about is a lot more secular across segments. Of course, retail, disbursement growth rates are quite aggressive. We are moving fast now given that we now have confidence on the asset quality and profitability. But having said that, the book...

Thank you, sir. If I could just give one last question on the margin. This RIDF rundown has been quite early last year. Going into next year, should this trajectory on margin expansion continue? Qoq or Qoq or Qoq or Qoq or Qoq or Qoq or Qoq or Qoq or Qoq

On a year-on-year basis, again, some of the rundowns that we had in RIDF this year also were more heavy from an H2%. Even if it is rear-ended, should have no material bearing, but there is a rundown plan, so we went at this. It's ballpark 28,000 crores. We think that... The minimum the reduction should be about 6,500 crores. That will also go as high as 9,000 crores by the end of March 20th.

Great. Thank you, and once again, all the best.

Thank you. Thank you very much. Thank you very much, James.

Thank you. Our next question comes from the line of Jaya Mundra from ICICI Securities. Please go ahead.

Yeah, hi. Good afternoon, everyone, and congratulations on a good quarter. Sir, our first question is on your growth mix, right? So, we have done, I mean, we have achieved 1% ROA. Asset quality seems to be holding up reasonably well. But retail slippages, while they're improving, they're still 2.90%. And we see that retail advances are both up 4% to 5% on both QOQ, IOI basis. Given the SMBC induction as the largest shareholder, do you envisage any change in the loan mix between retail, wholesale, commercial as you move towards industry level growth? So that is the question number one.

So, on the growth mix, I think important to note is the retail disbursement growth, because that's really an important control level that we have, which we are driving. If you look from a YOY perspective, in fact, we are kind of way above 20% YOY growth. We do believe that it should ultimately get normalized in the 20-25% range. But what we are aiming to grow the retail book next year is actually should hit the double-digit growth. So let's say about 10-11% is what we do believe it should. If I look at the corporate book, that's already growing at about 20%. So we do believe we have the levers to grow at 20%. Commercial banking is something that is a space we like. So, I think the momentum is playing out as we are exiting fiscal 26 is quite secular across all segments and that therefore gives us the confidence to start delivering a growth in Now, maybe for about a year or so. Retail is catching up, but they are still maybe, let's say, end up growing maybe 10-11% next year. To that extent, there will be some mix, I would say, compression, but that's not going to be material. And as we kind of move forward...

Sure, that is very helpful. And on the treasury, you know, the bonds, the ZSAC had spiked during the quarter. They ended at more than 7% at quarter end. Do you have any NPM on investment book or, you know, if you can specify, was there any NPM loss either in the P&M or in ASS reserves? Or was it a meal sick?

As a market philosophy, we don't run very high open risk through a trading book. It's not had any material bearing on our mark-to-market, because as a philosophy, we don't run quite large trading positions. However, yes, we do acknowledge that the yields did go up, and that has had a bearing on our minimum SLR maintenance book, which is largely parked in the HTM. But we do also note that the yields have come up. the reporting period of March. So, we will wait and watch how the yields behave. But that's largely in the HTM book. There has been some P&L movement through the AFS reserve, but that's already fully baked into our CET1 computation for December. And, you know, you would see that CET1 also continues to be healthy from 13.9%. We just consumed about 10 basis points. No material. On the contrary, we do believe that they should help us.

Right. If you have the number for AFF Reserve, let's say Q3 and maybe the Q4.

Do you think in terms of the absolute value?

Yes, yes.

The APEX reserve, we have a negative balance of about 100 crores.

And would you have the name? Yeah.

Yeah, the swing would be about 200 crores.

Okay, sure. And you have mentioned that 350 crores of one-time standard effects provisioning as a step-up provisioning. If you can elaborate on that, is this against any specific exposure? Is this in the run-up to ECL? Or, you know, any more color on that?

So, important question. So, on that, before I get into that, just a couple of context setting that I wanted to do. So, one, if you see, we continue to have a very strong recovery from SRs this quarter, which was in the range of 450 crores. The second is we've also had one corporate asset that got resolved, which had slipped earlier, much earlier, which was provided for, and that also meant that we had a write-back of about 288 crores during the quarter. And third, which is very fundamental and more important, is our core NPA credit cost is also lower quite substantially quarter on quarter. Now, these were like the three material contributors to provisioning buffers that we have, that gives us the ability to create. Second, what we do is we've usually followed quite conservative policies from a provisioning standpoint. A great example is if you look at our NPA, we've kind of carried PCRs in the range of 80% plus now for the last three quarters, right, and we've always stated objective to be quite high from an NPA standpoint coverage, right. So, as part of that philosophy as well, we kind of looked through portfolio and our own provisioning policies, and we did realize that there are sometimes evolving and possibly even prudent provisioning policies, and that application we have done in Q4 of this year, which translates over 341 crores. I want to be emphatically clear here that That the provisioning that we've done on certain product or segment in no way reflect an underlying credit issue or an impairment or our view about that sector. It is just what we thought was prudent in terms of and just being proactive in terms of taking more provisioning. Understood.

Thanks, Nedian. And, sorry, I have two more questions. I can ask them now or maybe I can, I mean, if you allow, I can speak them now also.

Okay.

Yeah, sir. So, yeah. Sir, on ROA trajectory, now we have, you know, achieved 1% ROA adjusted for labor code last quarter and this quarter. Maybe more than 1% is adjusted with the 40 growth contingent provisioning. What is the next milestone? As you had hinted that growth, you would aim at similar to system. So, how would you look at ROA trajectory because, you know, NIM seems to be having some tailwinds and asset quality, you know, you anyway have reasonably good tailwinds. So, what would be the next stop, maybe exit F527 or maybe full layer F527 if we can provide some color there?

So, it's again something that we've been saying we will want to exit. FI 26 with a 1% ROA, and as you rightly pointed out, I think we are now beginning to deliver that more consistently in December also being 1% adjusted for the gratuity cost. Now, I would say that directionally having achieved this, of course, there are two important levers. One is sustenance of this, is what we have to make sure we are driving. The important contributor to that sustenance and further improvement is really going to be on the core ROA. We have to ensure and make sure that we still have some more benefits that we will get from the J.C. Clark ARC writebacks over the next year. As we speak, we still have about 1,500 crores of base value of securities. Which can get redeemed over the next few quarters. So that, what we have to do over the next year, year or two, is really make sure that we have the core ROI construct to offset that. Not only offset, really expand from beyond, reasonably beyond 1% ROI. So, I don't want to kind of really put out. In number from a core ROA perspective, but our objective internally is really to drive, you know, 25, 30 basis points of improvement from our core construct, right, where we get our margins higher, get our cost structure higher, get our fees higher. And then, of course, if, you know, JCP flower benefits keep coming in, which we are indeed expecting even should play in FY27, that further adds to our portfolio.

Right. So, thanks. And lastly, if you have the number for credit card slippages and maybe PL slippages, it looks like they're clearly improving. But if you have the number in absolute rupees crore, I think last quarter was some 180 crores for credit card and around 150 crores for PL. And that will be very useful.

We will pull that out. I think maybe we might have interchanged the numbers, Jay, from your record. The credit card was about 133 crores and personal loans was about 180 crores. So that 186 is personal loans is down to about 160 crores. And credit cards... I think it has continued to be in the range of about 135-140 crores.

Thank you very much and all the very best. Thank you, Jay. Thank you.

Thank you. Ladies and gentlemen, to ask a question, you may press star and one. Our next question comes from the line of Advait Dathe from GoDigit Life Insurance Limited. Please go ahead.

Hi, can you hear me?

Yes, please.

Thanks for the opportunity. Congrats on the group set of numbers. A few of my questions have been already answered. I had one question I wanted to get some color on. So I wanted to understand a little on our branch expansion strategy. So for the full year, we have added around 82 new branches. Yes, I wanted to understand how the contribution Of retail disbursements has been for the quarter from branches. And as we move to the next leg of growth, how are we looking at branch expansion? Which locations are prioritizing and how that aligns with the loan subsegments we're trying to prioritize growth in?

For your question, so we had, we have paid out a guidance for the next four to five years with a plan of around 400 branches with an average of around 80 branches per annum, and we are on course of that. We opened around 82 branches last year, and we would be going at with that plan depending on, you know, if there is any upside available to do that. That is point number one. Point number two is on the disbursements. Our internal customer sourcing is approximately 50% of the overall dispersers we do. Out of that, approximately 60% actually comes from the branches to the branch customers. So, and we would like to, we would see this actually growing, going forward. There have been some calibrated growth strategy on the unsecured loans, and now with the new, you know, rule engines and the new platform, when we look at increasing that share as well, this would also result in increasing the contribution coming from the branches. On the third part, when we look at the branch expansion, we typically look at three points. One, what is the deposit growth happening in and around that pin coat? Second one is how is the credit growth happening? And third is how the quality of credit growth is available in and around that bank. So these are largely the three broader points we keep in mind while going for any selection of a branch location.

Got it. Got it. That's helpful. Just one quick follow-up question on an earlier question asked on RIDF. You did give out the rundown trajectory for the next one year. I wanted to understand how the mix would look like after one year. Would the decline be sort of linear or would it be accelerated post one year? Thanks.

So, the reduction of RIDF from here on will, so for example, F by 28 and 29 will be equally split and then there are some maturities in 30. So, I would say it starts getting thinner in terms of the pace of structure. So, 28 will be similar to 27 potentially, but 29, 30 will start getting thinner in terms of the pace of structure.

Okay. Got it. Thanks. Thank you. That's it from myself. Thanks and all of us.

Thank you. Ladies and gentlemen, in order that the management is able to address questions from all participants in the queue, you are requested to please restrict yourselves to one question only. You may rejoin the queue if you have further questions. Our next question comes from the line of Dave Day from Horsepower Securities. Please go ahead.

Yes, good evening, gentlemen.

Mr. Day, good evening, please.

Yes, good evening, everyone. And congratulations on an excellent set of numbers.

Thank you so much. Thank you. Yes.

It seems that the performance has been improving quarter on quarter. And it's very pleasant to be part of your story. So now my question is, by the next year, what is your target balance sheet size in terms of loan book? Yes, in terms of loan book size, what would be the target by the end of next year?

So, sir, we've said we've not put out a specific numerical target. We've said that we will want to have a growth rate in line with the industry, if not be better, and that our expectation is that should be in the 13 to 15 percent range.

Sir, percentage?

I have missed it.

Sorry.

13, 1, 3, 2, 1, 5.

Okay, okay, okay. And what would be the average targeted yield on the book?

For yield on advances, sir, that we've had as we look to exit March, that has been about 9.2 percent.

9 point? 9.2, 2 zero. Okay, okay, okay, okay, okay, okay, okay, thank you. Thank you, sir, for sharing the details.

Thank you for coming.

Thank you. Our next question is from the line of Rama Subaradi, an individual investor. Please go ahead. Am I audible, sir? You are audible, sir. You may proceed. Yes, yes, yes.

Yeah. Good evening, everyone. So, happy congratulations, Vinay, sir, for becoming a new MD and CEO of SBEC. And, yeah, the numbers have been very good. Yeah, the NPA asset quality and also like now deposits like 2020 where we were and the 2026, it's like a 3x growth. Very good. And also like the profits also looking promising. Like last year, like whatever management needed that ROA, we have exactly one person. So, basically, my question is like, so this ROA, like, I mean, 27 and 28 to 29, the upcoming year. So, I think we hope we maintain 1% ROA, and also, like, on top of that, that number will grow quarter-on-quarter on the yearly basis. Can you describe on that so that we will have good confidence?

Thank you very much, sir. And thank you for being quite supportive on the bank. We really value that. Thank you for that. On the question on ROA, we've said this that March 26th, we will look to exit with a 1% ROA. And I did also allude to that in my previous response. I think the most important thing is now to sustain this 1% ROI. Of course, there is a play that we also have from provision right back of JC Flower ARC. But what we have very emphatically worked upon internally is to say internal, outside of the JCPLAR ARC write-backs, we will look to improve our ROA, you know, 25 to 50 basis points, and it's a function of net interest margin improvements, it's a function of, you know, making sure we're disciplined on cost, and, you know, containing the credit cost as well. So, really, that's our endeavor. What you've said are exactly our aspirations and our ambitions as well to not only maintain, but to improve over the next two to three years.

Yeah, thank you, sir. And even this RIDF is reduced now. Like earlier, it was like 11 percent. Now it is significantly reduced. And I hope that this RIDF funds and also like it can improve the loan growth and also our NIMM also like any target in the next year like to cross 3 percent or any guidance on that. Like currently it is 2.7 percent.

So, on that, sir, we usually refrain from giving a near-term guidance. We said that structurally over a three-year period, let's say now about two to three-year period, we believe that we will want to get into a 3.25 to 3.5% kind of a range from a margin perspective. And as you rightly pointed out, RIDF is going to be an important contributor to getting the net interest margins higher as well. So that's really one big driver. Second, we have to make sure that our loan spreads are quite disciplined, and there's a lot of work that we've already done from a cost stop. So, if you look at our savings account rate over the last one year, we've taken the benefit of this reducing rate cycle to cut our rates by over 150 basis points. So, you know, savings account rates which was blended 6% is now well below 4.5%. We've taken another rate action in April as well. So our objective is to also make sure that we are focused on getting our cost of deposit, which we believe is very core to a bank and its liabilities to get that cost of deposit structure lowered as well. So not only our idea, which anyways is on a bit of an auto mode of rundown. But work hard to also get the loan spreads improved through our cost of deposits and funding as well, that we believe should help the margins. And last is, as the retail growth is now coming back, and as the mix starts playing out on the loans as well, that will also indeed help us improve the asset advance eaves and therefore start playing into our margins as well. We will work hard to make sure that we are driving each of these vectors.

Yeah, and last question, is there any plan like that?

Please rejoin the queue if you have any further questions, please. Okay. Thank you. Our next question comes from the line of Amitwarma, an individual investor. Please go ahead.

Thank you for giving me the opportunity. Congratulations on maintaining the growth momentum of performance. This is Hartning. Can you give us an update on the ATI 81 bonds case? And what do you think would be the impact on the balance sheet in the case of an adverse judgment?

So on the AT1 matter, this matter is subjudice, as you all know. The hearings have taken place at the Supreme Court, and the matter is also reserved for judgment. We will wait to hear from the Supreme Court. I would refrain from asking a judgment on what we expect. We stated this earlier as well. We do believe the actions we took were in line with... The contractual obligations and the processes that were allowed, but it is important that we respect the proceedings of the court and allow the...

Thank you.

Thank you.

Our next question is from the line of Shriyant from Sundaram Asset Management Company. Please go ahead.

Am I audible? Yes, yes, please. Go ahead.

Firstly, congrats on the amazing result. I just want your quick view on the West Asia wall and its impact on the Anthony segment, given that it's one of your team growth drivers. So where do you see that Iceland is planning to continue growing it, and how do you factor the stress over there?

Sure, thanks. So, we are proactively monitoring our portfolio, and this is an exercise that we have already started. You know, it's good to report that all our clients, whether it's an MSME or larger clients, you know, have been managing well. They have not shown any signs of stress. But this is a space that we will continue to watch, because it will have an impact on the inflation, and that can be second-order impact. So, we continue to... We will monitor our portfolio closely and talk to our clients to understand, you know, the impact and the actions that they're going to take. But currently, you know, since we have had a good client selection over the years, all our clients have been...

Thank you. Okay, perfect. Thank you so much.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to Mr. Vinay M. Tonse for closing comments. Over to you, sir.

Thank you so much, and I must place my sincere appreciation on record for all the esteemed analysts who could make it today. I know it's, of course, it's a Saturday afternoon and also a very busy day because the other two banks also that came in today. I appreciate your taking time off and then coming and joining us. Thank you very much.

Thank you. This brings the conference call to an end. On behalf of YesBank, we thank you all for joining us. You may now disconnect your lines.