Our first question comes from the line of Devdey from Horse Power Securities. Please go ahead.

Congratulations for the splendid bottom line figure and upcoming share purchase deal. My question is regarding the elevated NPA. On which account the elevated NPA came from? And I want to know the structure of the share sale deal. I mean, the share sale deal is only limited to the sale of the shares from the existing shareholders who came to rescue in the time of crisis or will it involve any further preferential allotment to the incoming buyer?

So I think coming to your first question, okay, in terms of elevated NPAs. So I think I would just like to reiterate our gross NPAs remain at 1.6% and this was also 1.6% last quarter and 1.7% in the quarter one of last year. Similarly, our net NPAs continu ed to remain 0.3% this quarter, which was also 0.3% last quarter and 0.5% in the quarter one of last year. So our NPAs as a percentage has actually not increased. Actually, if you see our loan growth has been only say 5% growth. And despite , this as a percentage, it has remained the same. So we are not seeing the elevated NPA issue at all. Okay. Coming to your second question on whether the transaction would be only a secondary transaction or any primary. I think as of now, this is a transaction where they would be taking 20% share only from the State Bank of India and other banks who came in at the time of the restructuring of the Bank in March 2020.

Yes. Just an addendum question. I mean, your management team has been in discussion with that buyer. So what is his intention? Is the buyer is intending to steep up the shareholding or are they happy with 20%?

So I think at this point of time, I think if you see the transaction has happened between the SMBC, the prospective buyer and the State Bank of India and other banks. Okay. So I think it would be difficult for us to read their mind for future.

Our next question is from the line of Ravishankar, an Individual Investor.

First of all, congratulations on the quarterly results. My question is…

Sorry to interrupt. Ravishankar, your line is not very clear.

Yes. I thought of asking an update about RIDF. We were expecting INR 25,000 crs to be matured this financial year. So any update on that, sir?

Sorry, which one? Can you repeat?

Rural Infrastructure Development Fund, sir, RIDF.

Not INR 25,000. I think we shared with you this RIDF deposit. There would be a repayment, which would be in the range of around INR 8,000 crores - INR 9,000 crores. And this is exactly what we have shared. RIDF deposit has come down by 16%, which is like INR 7,000 crores in last one year.

Our next question comes from the line of Ruchit Kapadia, an Individual Investor.

First of all, congratulations and thanks for giving me this opportunity to ask this question. My question is on the digital transformation. I wanted to understand if you can give or share specific examples of how YES Bank is leveraging either enterprise AI or the generative AI to drive the business outcomes, such as improving risk management and increasing operational efficiency ? That's one. The second question on the same lines is that, do you have any plans to include such relevant KPIs as a part of your quarterly investor presentation deck?

I think this is a very, very good point, which you are raising here. I think in the future, there is a lot of opportunities as I spoke, to implement the new technologies, both on artificial intelligence and gen AI, okay, in terms of reducing costs and bringing efficiency. I think this is one area which is like a work in process. We are trying to pick up some of the small use cases and would like to see how the AI can be implemented in those pieces, okay. We have picked up two, three cases, but with completely in alignment with you, that there are a lot of opportunities where we ca n start using those new technologies. And definitely, we take your point and going forward in our investor presentation, we would share the development related to the new technology being adopted by the Bank.

Our next question comes from the line of Abhijeet Kumar Choudhary from CSC.

Sir I am from Jharkhand. YES Bank results came and it is good result, also I am excited about this. Sir my question is if any small investor is investing in any company, he will expect a regular source of income in the form of dividend. So last year also you said that we are growing continuously from past 3 years, so next year we may get dividend. This year too, you declared good results with no announcement of dividend, which is a little disappointing. Will request you to please clarify.

Look, your concern is absolutely right. I understand that whenever a person invests, they have an expectation of regular income from such an investment. So, first of all, thank you very much for investing our Bank and also being happy with the Bank’s performance. We will endeavour to consistently perform going forward. However, t I would like to reiterate the difficulties that the Bank faced in 2020. Since then, collectively with support from all stakeholders over last five years, we not onl y stabilized the Bank but improved our profitability and will continue our efforts in the same direction . As far as dividends are concerned, the Bank has a well -defined dividend policy. Once the prescribed parameters are met, the Board will duly consider the interests of our investors and take an appropriate decision.

We have a follow-up question from the line of Devdey from Horse Power Securities.

Yes, gentlemen. I want to know regarding the credit growth. In the previous analyst meet, if I am not wrong, you guided at least 12% credit growth, right?

Yes.

Yes. But in the first quarter, the credit growth is not up to 12%, I believe, right?

Yes.

So, then from which quarter you expect the credit growth to speed up to meet your target?

It is the first quarter. Yes, please continue.

No, no, sir. You finish, then I...

Okay. So, first quarter you know is one of the slowest quarters in the economy , always. And that's why if you see the credit growth for the banking industry in the first quarter is also in the single digits. Last time, we also shared with you that we would like to see a credit growth between 12% to 15%. But at the same time, we would be focusing only on that credit growth, which will also give us the profits. So, I think the profitable business growth was the key message which we gave last time. Quarter 1 was a muted growth, but I think we are quite confident the way the interest rates in the market has come down. There has been an improvement in the GDP. And I think some of the challenges in terms of trade negotiation would also be cleared in maybe next few days. Then I think the overall credit growth in the economy would further pick up, and we would be able to participate in that credit growth. But definitely, I would again like to reiterate, our focus would be on a profitable credit growth. Because just by growi ng credit without making profit would not be good for any of our stakeholders, especially on the investor side. But I think we are quite confident that, that we would be able to achieve this kind of credit growth in the future.

Okay, I understood. But I want to get a clarification from you, that whatever credit growth is, at 12% to 15% or in between any figure of that, the credit growth would be supported by your raising deposits? Or would your capital position or fund position can easily accommodate that credit growth of 12% to 15%? I mean, are you targeting the credit growth through only raising the deposits or raising of capital is needed?

So basically, there are two aspects of credit growth. One is the Deposits, another is the capital. Capital we have sufficient. If you see our CET ratio is 14%. So 14% capital ratio is very good in terms of supporting the credit growth. But whenever we would be growing on the credit, it would also be supported by the deposit growth, which we are confident to raise is not an issue. Like if you see our Branch Banking Deposit has grown by 20%. So depending on the requirement, we would be able to raise deposit. So either deposit or capital is not a constraint for the loan growth. We would continue to grow.

Then what percent of the growth in deposit are you expecting for this financial year? If the credit growth would be 12% to 15%, then there is some expectation at your end that some percentage, this percentage is required in the deposit growth. What would be that percentage?

So whatever percentage we would be able to grow on the loan side, the same percentage we would grow on the deposit side.

Okay.

Thank you.

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

Hi, Sir. Thank you for the opportunity. Sir, a few questions. First on slide number nine, which gives the breakup of provisions. So we have collected INR 338 crores from SR. And now I think the book value is zero. Is this number same as provisions for investment, which is minus INR 345 crores? I mean, is this number the same? I mean, whatever recoveries that we are getting from SR in this quarter and next quarter or incoming quarters, that would be come down as negative provision line item?

Jai, this is Niranjan. That's right. So whatever recoveries, cash flows we get from the ARC, either as redemptions or excess recoveries, that will flow into the provision for investments as a write back.

Sure. And Niranjan or Prashant sir, if you have any ballpark number for, let's say, for the next 9 months, how should one look at? For this run rate of INR 340 - INR 350 crores , is this a normalized run rate or there could be some material changes there?

I think this is by and large the run rate kind of thing. So we are looking for something around, say, INR 1,200 crores to come from the Security Receipts for the full year.

Okay, sure. And secondly, sir, while I understand that you are not a party to the secondary transaction which is happening, but if you can suggest a timeline, I mean, this was -- the proposal went to RBI, for example, in May beginning, we are mid-July. What is your best sense in terms of timeline of their approval from RBI? Does it involve anything from your end?

So, Jai, I think fundamentally, if you see, the transaction was announced in the first week of May, okay. And as per our understanding, application has gone by the May end , okay. So we are expecting, in view of the past experiences, that maybe approvals might be coming in the month of September.

Sorry, by end September?

Yes.

But Jai, as you know, this is a regulatory process. I think it will run its due course. And it's also not fair on our part to be suggesting a timeline and also expecting that we give you a timeline on this.

No, that is right. Just a normal previous experience. Of course, this is not in your hand. Okay, so that is right. And, sir, do you, let's say, in case they get 20% and let us say they want to go a bit higher, do you, I mean, does the Bank need capital or you believe this 14% C ET1 is good, but of course, higher can be even better? Or because the purchaser has, you know, one lending license in the form of NBFC. So getting ahead of 20% can be a tricky thing. Your thoughts there? I mean, I just wanted to get some sense there.

Jai, I can only comment in terms of whether 14% is sufficient for us or not. I think 14% C ET ratio is good for us in terms of meeting our loan growth estimation for the current year. So we don't see any immediate need for the capital. I can't comment on the other part.

Sure. Okay. And lastly, sir, on your NIM, so of course you have one distinct advantage of RIDF, receding RIDF. But if you can comment, how do you pass the repo rate? Is it T+1? And, you know, what is your sense? Should the NIM be stable to rising only , because you have this receding RIDF or you may also have a NIM decline before it starts to rise up?

No. So I wanted to check if the RBI cuts the repo rate on let's say 4th of June. A lot of banks passes on 5th or overnight or maybe 1 or 2 days basis for the EBLR loans. Of course, MCLR is monthly with certain reset. But the repo rate linked loan for a lot of banks is passed on immediate basis. So that is like T +1.

No, I understand. So just quickly to respond to that, the rate is passed on the next reset of that loan. And the portfolio typically you can take a safe assumption that will reset every 1st of the month. So, if you have, let's say, a loan that will reset on 1st July, 1st August or 1st September. And therefore, if let's say a rate action has been taken post the 1st of the month, it will only get reflected in the repricing starting the 1st of the next month.

Right. So, basis this sir and your advantage on RIDF and rate section that you've taken on SA and TD, what is your outlook on the NIM for the next quarter and maybe full year?

So, Jai, if you recall, we had specifically called out in our last results as well that and this was in the backdrop of a cumulative 50 basis point rate cut back in April. What we had said is our objective through this interest rate rate cut cycle is to make sure that ultimately we exit out of this cycle while maintaining the spread between TD rates and our loan yields, right. However, we understand that the TD rates, of course, will take its time to reprice. And therefore, on savings account, we wanted to use that to mitigate the compression that we would see, which is the interim compression in the loan spreads over TD rates. And that's why we did undertake the SA account rate cut in April. It was also part of a strategic design. So one was that was helping us mitigate the NIM s, but it was also a strategic design on part of the Bank to really move away from a rate induced acquisition thought process to more the customer service and fulfilment thought process. So, I think it's a very material update. But anyways, coming back. So had just with the 50 basis points of cumulative rate cut, we would have and which we had said earlier as well, that we would have protected margins in this period. And then we would have accreted at the end of the period, end of this financial year. Now, with another 50 basis points of rate cut that has come through in May, in June, first week, what we are observing is that there is going to be pressure on the loan yields. And that the peak of that pressure we would see in the immediate future, which is September, because as you also rightly said, with the way the portfolio gets repriced, the maximum impact of this 50 basis points and a part of the 25 basis points from the previous cut will actually be in the quarter of September. And then December, the impact will be lower. And then of course, you know, as we exit December, you would have fully absorbed the impact. Now, from our vantage point, we are working on two principles here in this period. One, we continue to review our deposit rates in line with where we believe it is pegged right. So that's one part which will offset. And the fact that we have corporate deposits as well, which reprice faster also gives us some protection. That's number one. Number two, there is also some CRR benefit that will also start flowing in as we start looking at towards the end of September into December. And then of course, we have, as you rightly said, the RIDF, right? So, we don't -- we will not want to give a specific guidance here, just given the way there has been quite, I would say, material evolution of loan spreads in the market. But what we, directionally, you could say that September might face headwinds, which we believe December should start looking closer to where we are today. And as we look at March, we should possibly see improvements as a combination of all the actions tha t we are talking about. But I don't want to kind of pin a specific number. Having said that, I think the last point I wanted to make on margins is that this is assuming that the incremental loans that we are seeing are operating, are going to operate at the similar spreads to where they are today. If the competitive intensity fur ther increases as we go into, let's say, September and December quarter, that will also have a bearing from a margin standpoint.

Sure, sure, Niranjan. Thanks. And lastly, sir, I mean, you were giving one detailed backup of slippages into various retail products, which is now missing in this deck. If you can provide the -- specifically the slippages, an absolute number for PL and credit card, or if you can sugg est some direction there for Q1?

You're saying at a portfolio level, you wanted to know what the slippage -- gross slippage for…

Yes, Yes, for PL and credit card is?

So, PL gross slippage is actually trending in the range of about, let's say, about INR 225 crores. And credit cards would be in the range of about INR 180 crores.

Okay, sure.

Thank you. Thank you, Jai.

Sorry, you can complete, sir, if you want.

Sorry, Jai, this one additional data point that PL slippage has seen a reduction from 240 handle to about 220 this quarter. So, it's important to call.

And so is cards, which also is trending down with every quarter.

Sure.

Our next question is from the line of Harsh Modi from JPMorgan. Please go ahead.

I just wanted to understand the quantification of NIM decline over the next couple of quarters. I understand that the biggest impact is in second quarter and also a bit more compression Q-on-Q in third quarter. So, especially in third quarter, I wanted to understand if that compression Q-on- Q is right. And if I could -- if I would want to dimension it, especially given that rate cuts are coming through, SA rates, coming to TD rate cuts coming through, how much is the deposit beta? And how should we think about the quantum of decline over the next couple of quarters?

So, Harsh, again, I will refrain from specifically speaking about a very near -term trend of how this plays out. What I can certainly say is, when we look at the Yield on Advances, and I'm just talking about the stock book, which is floating, which is going to see the impact, that book, which is floating from a repo standpoint, will see about a 50 basis points impact in September quarter, right. Now, if I were to look at what does this mean from a NIM compression and I'm just saying is that stock book, which is floating. S o our total repo linked loans are about cumulative floating rate book is about 60%, of that repo is possibly about 60% of that. So you can possibly do the math to say what that 50 basis point implication works out on Yield on Advances. But I think the point I wanted to leave with you is, while that impact happens, we continue to work on improving the yield structure on our loan book as well. So, for example, when we look at, let's say, retail disbursements, of course, the book is not grown as much. In fact, it is flat. But if I look at the retail loan yields, they're already operating at about 150 basis points higher than where the stock is. And that, to that extent, we do expect that there will be mitigation that will come through on the loan yield compression. That's number one. Number two, we also have our ability to work through an efficient balance sheet where the share of Advances to Total Asset - how do we kind of work through that in this period when NIMS are going through to see some pressures. And t he last is, of course, we've also seen reductions in our borrowing. So there have been already repayments of some long term borrowing that we've had in the past. So the point I'm making, Harsh, is at the core level, while there will be pressure on net interest marg ins in the immediate term. Our objective is to see how we can best minimize that to possibly target maybe even a neutral situation. But I think it's a function of how some of the market forces will also play out.

Yes. So thanks to that market forces point, I'm getting a sense, I'm not sure right or wrong, but there are certain players who are already showing, even in the se early days, some signs of a degree of indiscipline, either on pricing or on credit standards, because it seems a lot of players are looking at a certain kind of segments which are not very high yield, mortgages, you can't really compete with the biggest guys. So a lot of the banks are competing for similar debt. Is that something that can play a spoiler? And the second point, the question related is, if we are unable to manage external forces, if competition is really hard, what else can you do at P&L level to protect your ROAs? Because ROAs are already razor thin, and if Cost of Fund or market discipline is something that can't be managed well. I'm thinking can LDR go up from 87 to 90 -95 or like what are the other levers you can use? So two questions here, market forces or indiscipline and what can you do to manage your ROA at current levels?

Sure, Harsh. So on the first part, I think some of what you said is already got reflected in the way you look at our loan growth this year. So, for example, if you look from a Y-o-Y standpoint, we are operating in the range of 5% to 6% loan growth. Of course, there are specific reasons for that, but I think at a very fundamental level, wherever we believe that the pricing is not conducive or is not meeting the risk filters that we believe are relevant. We are not going after that growth. So I th ink if I were to look at, let's say, a spectrum of prioritization, there is, of course, profitability and then there is growth. What we keep trying to work is to find a good balance between the two equations with, I would say, a sharper focus on improving the profitability. So I think that's the first point. The second is from a margin standpoint, we will continue to see redemptions in our RIDF book. So I think that's clearly one part that is playing out from a Net Interest Margin. Second is on our ability to drive cross -sell and consequent opportunities from a fee. I think we will continue to work hard on that aspect. And the last is I think and which is also important, is to continue to be very disciplined on our cost. And when I say cost, these are both operating costs and that we have already been able to pull back the growth, which are single-digit growth for the last, I would say, two or three quarters on a Y -o-Y basis. But importantly, also the credit cost. We are already operating at a PCR at 80%. Our view is that slippages should also start trending lower from here on at a gross level and therefore what net goes into the GNPAs. So while in the immediate term, even if you were to assume that there might be some pressure on the margins, our expectation is that we will continue to work through our operating cost structure as well as credit cost and look to cross -sell from a fee line. But I think there are levers from an ROA standpoint that we will continue to unleash. But as I said, we are talking about a very near -term element of one or two quarters. Structurally, as we look to exit fiscal 26, we should already have levers that indicate that Net Interest Margin is on an improving trend and not on a declining trend.

Great. I'm sorry, the final question on the market competition, which segments you are letting go in terms of growth to protect profitability?

So, Harsh, I think, let me break this again into, I think there are three parts. First, if you look at the Corporate segment, the Large Corporate segment, I think there is opportunity not only from banking, but their access to capital markets as well. So to that extent, if we find that the opportunities are wafer-thin on margins, we will not pursue. That's number one. Number two is when we look at our retail, now retail, if I break that retail book while at a blended level we are operating at a much higher yield, what's happening is that we need to also grow that book faster. But it's just that at this point in time and we'll take the example of unsecured as a line item, un secured has been effectively de growing for us when I just look at, let's say, the personal loans portfolio and it is de-growing for reasons well known already. So, we do expect that as the Asset Quality metrics on unsecured now are already stabilizing to already showing early trends of improvements, we can look to also improve that particular book. So once that happens, you will start seeing some benefits play out as well. So I think there are some of these nuances that are playing out. But just to respond to your specific question, it is essentially the Large Corporate to Mid- Corporate, upper end of Mid-Corporate, where I think we do see very, I would say, shrinkage of margins. And on the retail, I think there are products like home loans, auto loans, which in any case, we have been on a bit of a de-focus over the last 4 to 5 quarters.

Our next question is from the line of Ravi Shah from EquityDoctor. Please go ahead.

Yes, first of all, congratulations on a good set of numbers. Now I have two questions. First, regarding, I know that you are a secondary party, but if you can provide some information that recently the news has arrived that SMBC may go above 20% and make it to 25% also? And my second question is regarding, if you check the PPT, Page number 54, you have provided the shareholding pattern for the quarter ended June. Now there is a 0.4% discrepancy. The total, if we do addition, it is coming 99.6. So...

I'll take the second question, Mr. Shah. That's actually been rounded up to one decimal. I think that is causing the totalling…

I think, no, it is not that, because there is a 0.4, exact 0.4, 99.6 is coming. So you need to check on your end...

We'll be happy to correct ourselves, if that is indeed an error at our part.

And coming to your first question on the news item related to that, I think we would not be in a position to comment on this.

Okay. Thank you, Sir.

Thank you. Our next question is from the line of Ayan from Trinova. Please go ahead. Ayan, your line has been unmuted. You may proceed with your question. As we are not receiving a response from the current participant, we will proceed to the next questioner. We have the next question from the line of Madhuchanda Dey from MC Pro (Moneycontrol Pro). Please go ahead.

So my question is on your long-term outlook for ROA. You have had this target of reaching 1%. So, in the current quarter, of course, it's 0.8%, but aided a lot by the treasury line. So what is the structural outlook on ROA, especially given the, the slightly subdued outlook on NIM in the near term because of the systemic trade cuts? Does that 1% target get pushed? And if so, to which year? And what are the levers that you see that the Bank is having to reach that 1% ROA?

I think what we shared earlier also that we would be aspiring for a 1% ROA in FY '27 and say by FY '30 would be in the range of 1.5%. We are quite confident and we are on track of achieving that kind of number. You are right - the current 0.8% is mainly supported by the treasury income. But at the same time, this is always a combination. Either you will be getting a better ease on your loan side or if the rate of interest is coming down, you get an opportunity to make some money on the treasury side. But fundamentally, going forward, I think the lever for us is definitely in terms of NIM expansion, which would be mostly happening through the profitable loan growth, as well as in terms of reducing our Cost of Deposits. That is one part. The second is also in terms of continuing to work on improving the Non-Interest Income. And at the same time, I think the measures we have taken for controlling the cost, we will continue to do that. The other part would be definitely in terms of the credit cost. The credit cost, which currently we have seen, I think we have reached almost a peak. In some sectors, it has already started improving. So I think going forward, we are quite confident that credit costs would also start coming and also with the measures on this part. And especially when the RIDF balances would also start repaying. Already, we have seen 16% balances on RIDF has come down. We are going to see further reduction in the current year. And I think by FY '27, the RIDF balances would be less than 5% of our Total Advances. So I think all these things together, we are quite confident to achieve that 1% ROA by FY '27.

If I can just add one more point here, Niranjan here, is while there are near-term pressures at an industry level from, let us say, re -pricing of loans and therefore potential margin headwinds, it is not that these margins will not be recovered. And therefore, getting to the point you made, does that alter our long-term outlook for ROA from a margins lever standpoint? The answer to that is no, because while you might have some near-term headwinds, it ultimately, over a period of, let us say, four quarters or so, will recover to start delivering the normalized Net Interest Margins. And therefore…

I got it. Fully got it. But I have a related question. In fact, I was harbouring that question when Sir was responding to this. It's like, at 1% ROA, what is your assumption of NIM for the Bank?

So we will be operating at about a 3% handle for a 1% ROA.

Okay. And that you are reasonably confident that even if, suppose, there is another, say, 25 basis points kind of a rate cut, maybe in three months down the line, you will be able to recoup this 2.5% and go 50 basis points higher by the exit quarter of FY '27. Is that a correct understanding?

Ma'am, that's the endeavour. Of course, with evolving market dynamics, I think, we will have to keep watching and react to individual situations. I was also responding to an earlier question where if competitive intensity either is very high or very low can also have bearings on margins. But from our controllables, we do believe that as we go through FY ‘27, we should be able to deliver the guidance outcomes.

So this, sorry to belabour on this point, so this 1% ROA target is the exit quarter of FY ‘27 or average for FY ‘27?

I think as of now, we are looking for 1% ROA for exit of FY ‘26 and the average for FY ‘27.

Okay. Exit FY ‘26 and average for FY ‘27.

Yes.

Our next question is from the line of Raghvesh from JM Financial.

Hi, Sir. Congrats on a great quarterly result. I wanted to understand the math around the RIDF. So, for FY ‘24, it was INR 44,000 crores what you had given in the PPT. Now, y-o-y (year on year) you have mentioned a kind of INR 7,000 crores decline? My calculation indicates from last quarter, it was already at somewhere around INR 36,000 crores. So how much has been the decline in this quarter? And if it's not the fall in RIDF, I mean, how much is the impact of the borrowings which have supported o ur NIM ’s, because the Q-o-Q NIM maintenance is something not other banks have been able to do.

Sorry, I'm just trying to note all the questions you've made. So one is on the RIDF.

Yes.

RIDF, the balance that we had was in the range of INR 37,000 crores, as of March. And that number, as we look at closing, is lower at a net level by about, I think, INR 300 crores. So we have -- we continue…

Okay.

We are ballpark in the same range. I think the only -- I mean, there is some play of the recoupment, that redemption that we would have seen in the previous months -- previous quarter's closing stock was at a lower yield. And what has gone out, which is a nominal number, has gone out at a higher yield. To that extent, there is also some play from a basis point, but it may not be as material. So I think that's one part. I think your question was emanating more from the margin standpoint. So, if I look at, let's say, Yield on Advances, Yield on Advances last quarter to this quarter, we've seen about 15 basis points of reduction. And if I look at our Cost of Funds, we've again seen about 15 basis points of reduction. So I think to that extent, we continue to operate in a similar zone. And that 15 basis points largely comes from about 20 basis points of reduction in the Cost of Deposits. So that is what is flowing into about 15 basis points of reduction Cost of Funds. And that's getting reflected in, therefore, quite a comparable net interest margin structure for June quarter.

And you also mentioned during the call that there was a contribution of lower long -term borrowings. So, I mean, that is not hit at this level?

So what happens is, see, there are different mix that also kind of plays out. I think from a net interest margin standpoint, the contribution of that on an average basis during the period, I think those are elements may not be as material while it is impo rtant, because we continue to see improving trends now of redemptions and repayments in our borrowing. So, for example, there was about 550 crores of Basel III -compliant Tier 2 borrowing that got redeemed towards the fag-end of June. So is that a very substantial number? The answer is no. But that’s helping -- that will help us get our borrowing cost lower. There has also been redemptions on our Infra bonds over the last two quarters. So that's, again, going to help. But it -- for us, there are a lot of these elements and levers that we will keep working on to keep reducing our cost of funding. And there is just from Basel III Tier 2 bond standpoint, we will have cumulatively this year about INR 4,000 crores of redemptions that we will have to go through and that also helps us from a Cost of Borrowing. So, yes, I think, just going back to a previous question that was also asked, we will want to make sure that the headwinds that we face on the net interest margin from loan repricing, our objective is to see how we can maintain that in a very minimal impact margin in the absolute immediate term and then look to course correct and look to improve.

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.

Again, thank you so much for joining our earning call. And as we have stated last time also, you would continue to work on a profitable growth and this quarter result is actually a demonstration of our resolve to achieve that objective. Again, thank you so much.

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.