Our CD ratio, even on 17th of March was something around 168%. It has come down and now our target is to reach a CD ratio of less than 100% by the end of the year, says Prashant Kumar, Managing Director & Chief Executive Officer, YES Bank NSE -1.72 %.

How were you able to pay back the Rs 50,000 crore special fund that was drawn from the RBI ahead of time?
We need to thank our customers as well as our employees. With go pay back that Rs 50,000 crore to the Reserve Bank of India.

A lot of upgrades recently on your ratings and liquidity position as well. Where do you stand on key ratios like SLR, LCR, loan to deposit ratios and other parameters that you feel have led to these re-ratings?
The moratorium has been lifted and we are able to maintain all the liquidity ratios and the requirements from the Reserve Bank of India side. Our CD ratio, even on 17th of March was something around  168%. It has come down and now our target is to reach a CD ratio of less than 100% by the end of the year. After the successful FPO raise, on the overall capital side we are 20% and on the CET 1 also we are 13.4%.

Total deposits also seem to be on the rise, How has the liability franchise been building up? The confidence seems to be back, How quickly do you feel you can grow this?
In the first quarter, we had a deposit growth of almost 11% quarter on quarter and there was equal contribution from both retail and the corporate and we are seeing a similar trend in the current quarter also. We would be having a very good growth in deposit during the current quarter and the fact that we have been able to repay Rs 50,000 crore to RBI stands testament to that. We are focussing on retail but definitely the corporate side it comes as a large amount.

On the retail side it would take some time to match the contribution coming from the corporate but the number of new customers we have been able to add on the retail side is unprecedented. Even during the Covid crisis, we are able to open almost 60,000 accounts every month and before the bank was put under moratorium, our peak rate was something around 55,000. We are targeting at least 1 lakh retail customers every month to the bank.

Our focus would be more on the granular and the retail deposit but definitely on the corporate side because of our digital capabilities and we would be getting more and more CASA deposits in terms of offering them solutions for the cash management and the collections and also in terms of technology integration with their sisters.

In terms of credit growth, where do you see robust growth coming in and even green shoots emerge?
We are seeing green shoots coming from the retail and MSME side. On the corporate side also, utilisation of working capital has started going up. Definitely we are not seeing any new investment on the corporate side but utilisation of working capital is an encouraging trend. We are seeing demand coming from the retail side, specifically in the home loans, car loans and also in terms of the consumption credit and MSME credit.

There is a better utilisation also in terms of more demand but it is a slow process. I think August and the first 10 days of September have been much better as compared to the last four months in the current year.

You were massively stressed. Could you tell us what are the major laggards here and any notable recoveries on the anvil that might materialise soon?

We were expecting some recoveries out of this portfolio. We are on track but it would take a little longer time because of the current Covid situation. But at the quarter end, we would be able to share those numbers in terms of recovery but it is a very large portfolio and we are firing all engines to get our recoveries on track. It is taking a little longer but things are progressing very well and we would be able to achieve our targets by year end.

Are you still going to meet your credit cost guidance of around 5% or is it likely to go above that?
We still need to see what is the impact of Covis and when we declare our quarter two results, we would be in a much better position to share what would be the credit cost for the whole year.

What are the near term risk factors that you are monitoring?
The most important factor is definitely the Covid impact. After 31st of August we need to see the state of the book, where we need to go for the restructuring within the regulatory norms and what could be the slippage because as per the current guidelines, you can restructure only those loans which have a 30 days DPD as on 29th Feb. This would be a constraint as otherwise a large number of cases would be eligible for restructuring.