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Yes Bank Ltd
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Ladies and gentlemen, good day, and welcome to YES Bank Limited Q1 FY '21 Earnings Conference Call. [Operator Instructions]. Please note that this conference is being recorded. On the call today from YES Bank, we have Mr. Prashant Kumar, MD and CEO; Mr. Anurag Adlakha, Group Chief Financial Officer; Mr. Ashish Agarwal, Global Head, Wholesale Banking; Mr. Rajan Pental, Global Head, Branch and Retail Banking; Mr. Ritesh Pai, Chief Digital Officer; Mr. Niranjan Banodkar, Head, Financial and Investor Strategy. I now hand the conference over to Mr. Prashant Kumar. Thank you, and over to you, sir.
Thank you very much, and very good evening to all of you. We have already uploaded the presentation and the press release on our website, and I trust you must have gone through it. So I would not go in the presentation in detail, but I would like to share with you highlights on 4 critical parameters. So one issue was on the capital side. So with the recent raise of INR 15,000 crores through FPO and which has been the largest FPO in our country so far. And this is also one of the largest fund raised by any entity in the country. And I think you also need to remember that we have been able to raise this fund within 4 months from the date when the moratorium was lifted from the bank side.And now with raise of INR 15,000 crores, our CET ratio is at 13.4%, and overall capital adequacy ratio, we are at 20%. So I think this CET ratio of 13.4%, YES Bank has not witnessed at least in last 5 to 6 years as far as our, say, number goesThe second important parameter is on the deposit side. So during the quarter, there has been a growth of 11.4% quarter-on-quarter on the deposit side and the current account has been grown by 26%. With this raise of deposits, not only it shows the confidence of our customers back into the bank, we have also been able to meet on the LCR requirement. So as on 30th June, our LCR ratio was 114%. And with this support from our customers, we have been able to return back 50% of the borrowing from Reserve Bank of India and that is to the extent of INR 25,000 crores.The third important area is on our operating profits. So if you see, during the quarter, our operating profit is at INR 1,147 crores, which is 11x of the operating profit, which bank has registered during the quarter 4 of the last financial year.I would like to just again reemphasize that our -- we should compare the performance of this quarter with the performance of the fourth quarter of the last financial year because comparison with the quarter 1 of the last financial year is not. Meaningful because after the reconstruction scheme of the bank, I think it is not proper to compare the performance of this quarter with the performance of the quarter of the corresponding period last year.So on the operating profit side, not only net interest income has improved by almost 50%, NIMs have also improved by more than 110 basis point. If we see on the quality of assets, we have increased the provision coverage. So not only the provision coverage for the NPAs have gone up from 73.8% to 75.1%, we have also made 10% COVID-related provisions on our standard asset. For this quarter, it was an additional INR 642 crores. And overall, we are having INR 880 crores of COVID-related provision, which is sitting in our balance sheet. As a result of the better provision coverage, our net NPA number has improved from 5.03%, as on 31st March, to 4.96%, as on 30th June. Even gross NPA number in absolute terms has come down only because the overall loan book has also reduced. The GNPA percentage, we are seeing an increase from 16.8% to 17.30%. But otherwise in absolute terms, there is a reduction in the GNPA number also. So I think this quarter, despite -- the first quarter is always weak -- despite pandemic, there were a lot of issues, which I think the entire group is facing. So I think if we see in this background and especially after the bank was under moratorium in the March, so it's a significant progress on all the fronts during the first quarter. I'm heading the entire top management team with me. I would stop here, and we would be very happy to answer your questions.
[Operator Instructions] We have the first question from the line of Sri Karthik Velamakanni from Investec.
A couple of questions from my end. Sir, if you could give us some color on the movement of moratorium across product segments like you have done for the last quarter? That was one. And second, if you could also explain the change to the standstill number from our -- from about overall overdues from INR 15,000 crores to INR 7,800 crores. Now what has helped that reduction? And the third question is the corporate SME position of around INR 11,000 crores, which you had indicated as of Q4, what is the current thought process around it?
So giving answer to your first question on the moratorium number, and I think that would also take care of your question on the standstill number, and I would like to, like, respond to this question in detail. And I think which would also take care of the concern, which may be the questions in the mind of so many other people also. We have already shared on 5th of May when we declared our annual results about our moratorium number. Now if we see our moratorium numbers were in alignment with the numbers which has come in the RBI report for the entire banking industry and especially for the private sector bank side. So our numbers are in alignment with this.Now if you see the economic activities happening around us, though there is an improvement but I think we are almost very clear that we have not been back to the normal economic activity. So if the economic activities have not been reviewed to the full extent and if any of us is expecting that moratorium number would significantly improve, so I think that would be very, very misleading. Because the moment I say that moratorium number has, say, reduced, say, from 40% to 30%, it means I am assuming that 10% of the customers have repaid the entire thing for the last 3, 4 months, which cannot happen if the economic activity has not revived. So I think we need to see this position in these circumstances. But what we are seeing that there is an improvement all around in our book. So giving you a standstill number, which was INR 14,956 crores as on, say, 31st March, 2020, has come down to INR 7,800 crores as on 30th June. So it means the customers who are having the overdue position as on 29th Feb, during these 3 months, they have repaid almost 50% of the overdue position. This is one data point. The second data point, that on our retail book, 91% of the morat customers they were never more than 30 DPD in the last 12 months. So that shows the behavior pattern of our customers. The second data point is that on the retail side, we have reached to 70% of our normal collection before the moratorium thing.On the credit card side, we have reached to 90% of our normal collection, which was there in the pre-morat time. Significantly, on the MSME portfolio, 85% of the customers, they were never more than 30 days DPD in the last 12 months. So that again shows the behavior of the customer. Another data point on the MSME piece is that churning in our book on the MSME has leased 30% in April, it further improved to 43% in May and 61% in June. Now 83% of our customers on the MSME in morat has churning, which is more than interest obligation from April to June 2020. So I think these are the data points, which indicates that there is an improvement in terms of the behavior and the quality of the customers who have availed the moratorium. But I think unless the economic activities revive to the full extent, then expecting that there would be a significant drop in number of customers who are availing moratorium would be a little unrealistic. Responding to your third question on about SMA-1 and SMA-2 number of INR 11,000 crores, I think, again, after the RBI dispensation, this would not be so significant, and it will be very, very difficult to monitor because the customers have availed the moratorium. So I think we need to see this position also from these data points. I hope you got answers to your question.
[Operator Instructions] The next question is from the line of [ Vishal Mehta ], who is an individual investor.
Yes. My -- just a moment. Yes. My question to you is, with the NIM that has come to 3%, I would just like to know the details on the NIM that whether the NM is to stay at 3% for long? Or is it on the basis of the cost reduction, which is due to the reduced business transactions that are happening currently?
So [ Vishal ], I will be saying the current NIM at 3%, it also includes INR 150 crores of interest recovery into our nonperforming exposure. But on the normalized fees if we see the operations during the current quarter, I think our core NIM would be around 2.8%. And it is on account of both, because there are no reversal on the interest side, on the earning side. And our costs of deposit is also, basically, if you see, it has not come down, it has gone up slightly. Because in the last quarter, because of the, say, premature payments on the fixed deposit side, there was a penalty charge from the customers. So basically, the current cost of deposits and current ease on advances is normalized with a NIM of 2.8%.
Okay. I get that. And one more question to you would be that the 13% CET that we are enjoying right now, in one of your media interactions, you said that, "I would use around 1% for provisioning." So after looking at the numbers of -- for the Q1, what do you suggest that where will your numbers be? And how much would you use up for providing for the previous NPAs that you've been providing?
So I think as of now, all our NPAs have been adequately provided, and there is no need for us to make any additional provision on our existing NPA book. And depending on how the COVID situation would, say, turnaround in future, I think any requirement -- like, if you see this quarter also, entire PPOP, which is almost INR 1,100 crores, has been used to make provisions. And on the, say, book, which has been impacted by the COVID, we have already made a provision of INR 880 crores. So any future slippage would be taken care from this INR 880 crores provision, which we are having plus PPOP for the future and any recoveries. So -- but everything will depend on how the impact of the COVID would pan out in future.
Okay. And one last question, sorry, but what would be your average yield on the retail side -- retail-side lending?
Average yield on retail side? Do we have this number?
Yes. Yes, yes. Average yield on the retail side of your portfolio? I mean, when you lend to the retail customers, the granularity [indiscernible]...
No, I understand. We are just trying to have the number.
Okay.
So it's about 10%.
Okay. And that is after the cost -- after bearing the cost or before the cost?
No, this is the yield. This is the yield on that retail number.
[Operator Instructions] The next question is from the line of Sri Karthik Velamakanni from Investec.
Sir, in the earlier part of your response on the moratorium, I actually could not fully understand the response for MSME, the 30% in April, 40% in May and 64% in June. If you could maybe repeat it one more time for clarity?
So what I was saying that on the MSME side, 85% of the customers who have availed the moratorium, in the past 12 months, they were never in the DPD of more than 30 days. So it means they are the customers, where, like, behavior from their side and the behavior of the business, so they were not having any overdue in the past. So that was one part. Secondly, what I was saying that the turnaround, so cash started coming in their accounts, it was 30% in April, it improved to 43% in May and 61% in June. So it means 61% of the morat customers have started getting the sales routed through their accounts, which is a reflection of the improvement on the economic activity. The third data point, which I was saying that 83% of the customers in morat, they have the cash flows routing through their accounts, which is more than the interest obligation from April to June. So it means, basically, if you see their interest from April to June, they have been able to service.
Understood, sir. And on the similar thought process, if you could maybe explain, at a bank level, how -- what proportion of customers have not paid any dues through this last 4, 5 months and who have paid the entire dues for the last 4, 5 months? If you could help with these 2 data points?
No, I think that is something which would be very, very difficult to, say, figure out at this point of time. Yes.
Okay. Fair enough. Then if I may get back to on your fee income front, especially in the corporate side, it continues to remain negative for 2 continuous quarters, like what is going on from an accounting perspective there? And how should one think about that line item?
So can you please repeat?
The negative corporate product.
Negative? So basically, if you see -- yes, so if you see the earlier business model, which was adopted by the bank, that whenever you originate a large corporate loan or project finance, we were charging the upfront fee, okay? So if you see almost last 12 to 18 months, we have not originated any large project loan or any large corporate loan. So that's why the upfront fees, which we used to get earlier is not there. And as a strategy, also, we are moving away from large corporate loan to both on the retail and MSME side.
Okay. But will this continue to remain a negative item for some more quarters before the growth comes back?
No, no, I don't think so. It would not be negative now because if you see the comparison, since we have not raised earlier also, and going forward, definitely, but it would not be very large corporate lease.
Okay. Got it, sir. And what is also perplexing to a certain extent is despite having a very huge amount of DTA on the balance sheet, we have actually made tax provisions for the quarter. So how should one think about this DTA unwinding and when will it start to reflect in our P&L?
Yes. This is Anurag. So the DTA that we are carrying is on account of the timing difference that occurs between us making a provision and the tax authorities allowing us that provision from a taxable profit perspective. So it's only when we write-off these assets, that's when we are able to roll back the DTA. It doesn't impact the operating profit. So I still have to pay taxes on the operating profit I make. And to be able to utilize the DTA, it's only when the write-off will take place, that's when we will be able to unwind it.
So at least in the near term before we either recover the dues and write-offs or like a 100% provision write-off, it is prudent to assume a 25% tax rate?
That could be right. That could be right.
Okay. Understood. And lastly, in terms of our balance sheet realignment, I -- already there is some amount of balance sheet realignment, which is happening with deposits coming in. But how should one think about the overall balance sheet size? And how you would comply with SLR/CRR requirements as we head into the next couple of quarters?
So we've been in balance sheet conservation mode for the last sort of 4 quarters and that's why the balance sheet -- the overall balance sheet has been degrowing. But that was a function of our CET1 being very close and over the last couple of quarters being below the regulatory minimum. Now with a CET, which is almost 500 basis points above regulatory minimum, it allows us the opportunity to grow. So clearly, we would expect to see that flow through. And as we've mentioned previously, we expect our mix of corporate versus retail to change in favor of retail and MSME. We are currently about 56% on the corporate side, and our longer-term aspiration is to make that 60-40 in favor of retail and MSME.
The next question is from the line of Arun Kejriwal from Kejriwal Research.
Sir, a couple of questions. The first question is, the bank has definitely seen traction and your performance is heartwarming. If we take a medium-term perspective and talk about the coming 2 to 4 quarters, what according to you could be the challenges for the bank?
So Arun, I think the most important thing because of the pandemic, there is a lot of uncertainties around the quality of loan book and the recovery prospect from our asset book. So I think this has to be seen in near future how things would pan out. Because if the economic activities are not revised sufficiently or if the dispensation or the support from regulator and the Government of India may not be adequately there, then I think the entire environment is going to see a stress. That is one part. Second that prospects of recovery in the stressed asset portfolio, there may be -- it may be further extended, if there is no improvement on the economic activity. So at least, I think from our side, this is a major challenge, and it would depend on how the pandemic could evolve over a period of time.
Right. Sir, second question is, you now have the adequate capital that you require to take the bank forward. Considering the present scenario, where we have a pandemic, which is, as yet, not sure how it will pan out going forward, what would be the trust area of the bank? Where would you be looking to consolidate and sort of gain further traction as we go forward?
For us, it's a clear-cut choice is for the retail and MSME, and this is because of 2 reasons. One reason, like, if you see the current quality of our book on both retail and MSME side, I think this is one of the best in the industry. And the reason is that our teams are extremely good in terms of selection of customers and also in terms of collection. So I think this capability, which bank is having, we are going to use that. And increasing the loan book on the retail and MSME side by, say, around 20% would not be difficult because overall book is small and we can still grow by this percentage even while very, very selective in terms of customer profile. So I think this will be a clearcut reference for us on the retail and MSME.
The next question is from the line of Harsh Agarwal from Deutsche Bank.
Two questions from me as well. Just quickly. One is, what's the plan around repaying the remaining, I guess, special facility from RBI in case you have a time line in mind? And the second thing is the coupon that is accumulating on one of your upper Tier 2 bonds, I think. Given that the capital ratios are kind of back in line, where do you stand on the RBI approvals to pay that coupon?
So I think to answer your first question, we have already paid 50% of the borrowings from RBI. Remaining 50% also we plan to, say, repay in another 45 days. And to your second question on the coupon, which was trending, which we could not pay because we were not meeting on the capital. So we have already, like, immediately after capital raise, we have taken up with RBI for their approval. And once RBI approval is there, we'll immediately repay.
The next question is from the line of Vikash Rungta from Morgan Stanley.
I just wanted to understand, in terms of loan book growth, now you have a good capital available and you said that you will be focusing on retail and MSME. So as of now, your Q-on-Q book has decreased. But going forward, let's say, 6 months or 1 year down the line, what kind of disbursement and what kind of broader level loan book growth you are targeting?
So I think still we need to be very, very careful because we believe that in these kind of uncertainties instead of very aggressively growing on the loan book, this is the time where we need to be very selective in terms of the customer and selective in terms of the type of activity, keeping in view the overall environment. So I think instead of going very aggressively, we would be very careful, and we would be very mindful about the quality of loans instead of the increase in the loan book side. But definitely, with the capital and the liquidity, which we are having, we would like to grow, but we would be very careful in terms of quality.
Sure. Another thing I wanted to understand, sir, is, post this successful -- one of the largest FPO raise, what is our discussion with rating agency? Because still a couple of rating agency have rated YES Bank below investment grade?
So I think we have already started engaging with the rating agencies. And just give us some couple of days, and we are hopeful of getting a rating upgrade.
The next question is from the line of Amit Rane from B&K Securities.
Sir, can you give our absolute loans under moratorium as on Q1 end, absolute amount?
So I think this I have shared in detail on the moratorium side. So I think the number which we have given earlier. We are not tweaking those numbers in the sense it would be misleading to change those numbers because it's just not possible to say. And if you see the overall economic activities around us, they have not been restored to the normal economic activities. So expecting that the customers without revising the economic activity would start paying the entire dues to the bank is something which is not, I would be saying, realistic in our sense.
Okay. So what -- just for clarity, what we are saying is that as on 5th of May, what we have disclosed as moratorium, that is the latest that we are disclosing, right?
Look, so what I'm saying, we also need to, like, appreciate. If I am saying a person is out of the moratorium, it means he has paid the entire thing, the entire interest and installment during the last 3 months. So what I'm saying is, I can give you a number, which may not be correct. So I don't want to mislead you. I am sharing with you what are the positive developments which are happening in the books of those customers who are availing the moratorium. So maybe there are customers who have paid for 1 month, there are customers who have paid for 2 months, there are customers who have started routing the sale proceeds in their accounts, okay? So basically to give a clear-cut number would not be, like, possible for the bank.
The next question is from the line of Parth Gutka from Macquarie Capital Securities.
Though we saw sequential growth in the deposits this quarter, but the retail term deposits are flat quarter-on-quarter. So can you just explain what sort of management and what strategy the management are adopting in order to granularize the deposit fees, basically, the retail deposit strategy?
So like if you see on the retail deposits, I think our head of retail, he will share you the strategy, but we also like the way we classify our retail deposit. So retail deposit is mostly which is happening on the branch spending side. Okay? So in these deposits, we also have the large deposits coming from the government and others, which is not classified as a corporate. But I will give you a data point in terms of, like, the renewal of fixed deposits on the retail side, so we have reached that to the 65%, which is a normal thing for any bank, and even it was normal for us before the moratorium. Similarly, if you see the premat, there also our number has come down to 1% to 1.5%, which is again a normalized one. So I think we are seeing on a gross basis, a very good traction on the retail deposit side. The only thing is that this growth on the retail deposit is compensating the outflow, which happened on the account of the government and government entities, which were part of our retail portfolio in the branch banking.
The next question is from the line of Atul Khadilkar from Wells Fargo Bank.
First of all, congratulations on a successful capital raise. While I think your strategy, reviewed strategy, around retail and MSME has been very well articulated and fairly clear, keen to hear your thoughts on how do you plan to leverage the existing wholesale banking infrastructure? Or what are your strategies around that particular segment? And a sub-question to that is, obviously, a large part of the stressed asset pool sits in the wholesale banking. So if you can provide some guidance on how do you expect the resolution of the stressed assets over the next couple of quarters?
So thank you. And responding to your second question first, our stressed asset portfolio is not taken in the wholesale book. It has already been segregated into a separate vertical. This is focusing only on the recovery and resolution out of the portfolio. So this has been segregated from the business, and the focus is absolutely very, very clear. Second thing, the number of people who are managing this stressed asset earlier, it was around 25% to 30%. So now a strong force of almost 100 employees are working day in and day out only for the recovery and resolution of those assets. So that is what is happening currently. But at the same time, we are exploring the possibility of setting up a separate entity, where all these stressed assets can be migrated. And we are seeing interest from some of the players, international players, who would like to put in equity in this separate entity. So it could be 51-49 in their favor or it could be 51% for the bank and 49% for them, so that this pool can be managed professionally and there will be arm's length relationship between the bank and this entity and any upside can be shared by us and any investor in the proportion of their equity participation. And we are already in that process, and let's see how it would evolve depending on the regulatory approval. Answering your first question on the corporate side. So if you see the corporate side was focusing today more on the loan origination, debt or equity So our relationship with the corporate would continue, but the focus is shifting from loan origination to more on the liability side, more in terms of offering them digital products and the technology products, which would not only help the bank in getting the CASA deposits but would also able to get the fee income.Similarly, we are going to participate in their nonfund-based requirement in terms of their trade finance, in terms of their forex transaction. So I think the focus is more on the asset light, more CASA liability and more on the fee side. But I think our engagement with the corporate would remain very, very intense.
The next question is from the line of [ Nikhil Shankar Dhalani ] from -- who is an individual investor.
I apologize for repeating the question. I just wanted to know the exact loan book under moratorium? And the second question is, have you provided any provisions for telecom industry considering the AGR case that is going on?
I think answering the second question first. We have mortgage provisions for the telecom industry. And specifically for the account, which you are trying to mention. Because we still believe that despite so many ups and downs, I think this account is going to survive. And this is in the national interest that this account remain intact.Coming to your first question about the book, which is under moratorium, I think we have already shared earlier. And as of now, to give a specific number of customers of the portfolio, which is under morat would not be correct. Because then we are assuming that the customers who are availing moratorium early -- earlier have repaid the entire dues for the last 3 months, which will not be a correct assumption keeping in view what is happening on the economic recovery cycle.
So is it possible to give a number based on the benchmark by which other banks have given, like, for example, HDFC has given 9% and Kotak has given close to 9%? Is it possible to give so that we could have a comparison?
No. So I think I would not like to comment on those numbers. But definitely, our numbers are in alignment with the numbers given for the private sector banks in the recent RBI report.
[Operator Instructions] The next question is from the line of [ Tushar Mehta ] who is an individual investor.
Just 2 things I would like to know. One is the corporate loan, which you are -- which you have given in the range of 54% or 56%, how much of that would have been collateralized? That is number one. And number two, the -- actually 3 questions. The -- I need a little more clarity that this moratorium accounts, they must be paying -- they must be started paying 1 installment or 2 installment or what that kind of thing, a little clarity on that, if you can? And the third question is, how much is your real estate exposure of your corporate loan book?
So I think your first question is, like, what book is collateralized, I think YES Bank has been accused of taking more than adequate collateral for giving the loan. So I think we can have some comfort out of this.Second about whether the customers who are availing moratorium have paid at least 1 installment or 2 installment, I think Tushar, we need to say -- appreciate that when there is so much demand from everybody to have a moratorium from RBI to have some facilities from the government. And once this dispensation of the facilities have been provided, why they should not avail it, okay? So it does not mean that these accounts would slip to NPA. There are very good customers where there have been no delinquencies, no overdues, but they have availed moratorium. They are preserving cash because today you really don't know how the things would pan out in the next 6 months. If you just remember, like, maybe 15 days back, every day, it was 25,000 number because of COVID. Today, it has become 50,000, okay? In these circumstances, when the economic activities reviving to the full extent is a challenge then I think things are quite uncertain and everybody who likes to preserve cash would like to have the cash for taking care of their future requirement. And your third question about what is our exposure on the real estate side. So on the commercial and residential real estate, it is 7.6% of our loan book.
Yes. And I think that is -- that would be one of the most stressed -- I mean, in today's time, it will be one of the most stressed kind of sector in the economy today?
I would agree with you.
Yes. So that gives a very good comfort level with the investors that you have -- you don't have very high exposure -- percentage exposure to real estate, which is very scary, actually at this point of time?
Thank you. Thank you so much.
And one last question, please. I can squeeze in one last question. You said that the retail loan -- retail realization of your interest is 10%. I'm a little perplexed because in retail, you lend at -- in credit cards and this, it goes up till 30% or just so. The 10% is ex after the expenses or it's normal 10% -- you lend at 10%?
So if...
So you need to really bucket the products. So products like the mortgage loan would vary between 9.75% to around 10%. The unsecured loans typically would be ranging between 11.5% to 12%, right? The vehicle loans, like commercial vehicles, construction equipment and car loans put together would be hovering around 10%. So what we told you was an average of 10% to 10.2% as a range of the entire range of products. Credit cards, obviously, because of revolving effect, it goes a little higher, as you rightly said. And so is the goods vehicles -- so certain category -- or the affordable home loans where the rate would be slightly higher. So we gave you a ballpark range, which is between 10% to 10.2%.
All right. That is without expenses? Am I correct?
What kind of expense are you talking about? Yes -- but you are right.
The next question is from the line of [ Gopi ] from SBI Life.
Sir, on the noninterest income side, if you could provide us some sense on how this will move because when we see the -- this quarter, noninterest income, we've seen some gains made out of sale of our existing investment. So other part of the noninterest, I wanted to understand how will we go ahead? Also, if you could give us some sense on what is the investment book today? Are they still in line with this book? This is my question.
Anurag, you take this.
So in terms of the non-interest income, you rightly pointed out that one of the significant contributors was the sale of investments. The retail banking fees, for example, we've seen a fair level of drop compared to the previous quarter, understandably so because business activity was very, very soft in comparison to what we would have seen in the previous quarter. So for example, things like trade and remittance fee on the retail side or for that matter, facility processing fee, the interchange income, all this was low. So retail banking was about 1/3 of where we finished in the previous quarter. And obviously, that's not a normal. Once the activity starts to pick up, and sort of ongoing focus on looking more at retail and MSME, this is a number which we would expect to pick up to previous levels, as the activity moves up. Corporate trade and cash management was largely flat compared to the previous quarter. But again, I think given the low level of activity seen in the current quarter, we are pretty satisfied with that number. So while -- for the quarter, we have reported a noninterest income, which is slightly ahead of where we finished the previous quarter. But we believe that once you take out the P&L on sale of investments, this is a number which will normalize in line with what we have witnessed previously. But that will be a function of how soon the activity starts to return back to normal.
How much is the investment still in your book, which can probably [indiscernible]?
Sorry. You were not audible. Could you please repeat that?
We have booked some part of the income by selling some of the existing investments. So I wanted to understand the value of the remaining investments in the book, corporate investment? Because investments have come up and I presume that there might be more ways of this.
So basically, it's not like a corporate investment group. This is our treasury investment on the SLR side, okay?
Okay.
Yes. Yes. Yes.
And sir also if I could understand a little bit about that JV that you mentioned which is maybe in the offing in terms of -- is this the JV, where our return of assets are being housed?
So I think here, yes, just to say -- I think your voice is breaking. So are you asking for a return on asset? This is the question?
I'm talking about the JV that you mentioned earlier. Can you hear me now?
No, it is not clear as yet. Sorry.
Okay. I'll come back. Maybe some other questions, I'll come back again.
We'll be able to take one last question. We take the last question from the line of Rahul Jain from JPMorgan.
Just 2 questions. Firstly, on the deposit side, can you share how the flow is looking like in July, particularly on the retail deposit front? And secondly, if you could share your overall rating profile of your wholesale book, if you could share that? Yes.
So deposits on the retail franchise is moving smooth, and both in terms of our new acquisition as well as in terms of our renewals as well as the demat. I think all the 3 are absolutely under control. And today's good results will further give it a boost. So I think like last quarter, wherein in spite of 45 days muted growth, the overall branch banking retail deposits grew by around INR 1,000 crores -- INR 1,500 crores, INR 1,500 crores actually. So we see a good traction happening there, and this will only build up from here as the markets are opening and more and more customers are now willing to meet up.
Okay. Understood. And on the second question, sir?
Can you repeat your second question?
I just wanted to check what's your overall rating -- internal rating profile of your wholesale book, like between BB and below. Are you still sharing that?
So our internal rating profile is not in alignment with the external rating. So I think that internal rating profile of, say, our book, I think, would not be relevant outside the bank.
Thank you very much. We'll take that as the last question. I would now like to hand the conference back to Mr. Prashant Kumar for closing comments.
So thank you very much for connecting on this quarter 1 results with us. I think our quarter has been quite satisfactory for us. And we need to, like, remember that we are talking about the performance of a bank which was in moratorium just 4 months back. And in a very short period of 4 months, not only we have been able to stabilize the operations, there has been an 11% growth on the deposit side. We have been able to raise one of the largest FPO in the country -- rather the largest FPO in the country. And today, we are having a CET ratio of 13.4% and overall capital adequacy of 20%. There is a adequate provision on our loan side as well as on the investment side. And we have been able to, also, say, generate a decent operating profit number during the first quarter, which has been severely impacted because of the pandemic. So I think keeping in view the entire external environment and the circumstances through which bank has passed through in the last quarter, I think this is a significant improvement in the performance. And our presentation has already been uploaded, and we, as a team, are always available to you in terms of any clarification question, and we would also love to have your suggestions also because we think that you are very, very important partners and critical partners in the journey going forward for the bank. So thank you so much for taking this call.
Thank you very much. On behalf of YES Bank Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.