Yes, there are maturities coming, and we envisage to the extent that economics work, we will have a similar replacement. If not, it has to be replaced by deposits. And that is part of how the rate of growth of deposits need to outpace the loan growth. Otherwise, we will not be able to keep up with the loan rate of growth.
Chintan Joshi: Understood. And finally, on the CRB business, which is growing really fast. What is the overall lending yield of the CRB loan book so that we can understand what is the mix impact on the overall lending yield from the CRB given that it’s growing so fast?
Srinivasan Vaidyanathan: Okay. The CRB yield comes in about between 9% to 11%, depending on product. There are certain products that go above that. There are certain products which are around that 8.5%, 9%. But on an average, it’s slightly above 9% type of yield at an aggregate level. But there are several products, as you know, within the CRB segment from business banking to emerging corporates to agriculture loans to SLI loans to the commercial vehicle and so on and so forth. So it’s a different price point. But on an aggregate average, if you look at it, it’s north of 9%.
Chintan Joshi: So it is in line with the overall group lending yields. It’s not above the average of the balance sheet, it is in line with it.
Srinivasan Vaidyanathan: It’s a good assumption. Yes, it is not above the average. It is at that level, not dragging the overall average down as such in any meaningful manner, yes.
Operator: Next question is from the line of Nitin Aggarwal from Motilal Oswal.
Nitin Aggarwal: Srini, 2, 3 quick questions. One is on the Bandhan Bank stake sale that has happened in this quarter. So if you can quantify the gains on the sale, how much has flown in this quarter from that?
Srinivasan Vaidyanathan: See, I talked about that INR 15 billion or so on the overall, I mentioned. So not necessarily — I won’t talk about any individual particular item, right, but from an overall point of view, I did talk about the mark-to- market and trading treasury investment portfolio income INR 14.7 billion, INR 15 billion, right, which is there.
Nitin Aggarwal: Right. So this is included in the total, but you’re not like giving the separate number for that.
Srinivasan Vaidyanathan: It is included. Yes.
Nitin Aggarwal: Okay. And secondly, on the Credila, have you booked the gains in this quarter or it will come in 4Q? Like how are you looking at that?
Srinivasan Vaidyanathan: Okay. No, Credila, nothing has been booked in the December quarter. We are waiting for regulatory clearance before the transaction can close. So we are working through — or the potential purchaser is working through certain things to provide. And we are hopeful to close soon, but there is no particular concrete time that I can give, right? They have to go through approval process before it can conclude.
Nitin Aggarwal: Okay. And lastly, on contingent provisions. This quarter, we have made INR 1,200-odd crores of contingent. So any particular levels you want to reach or is it just like the flowback of the excess gains that we are having right now that we are using that? So any thoughts around how do we look at this contingent provision number?
Srinivasan Vaidyanathan: Okay. See, the contingent provision that we built in the quarter, INR 12.2 billion, we attributed on a prudent basis towards the AIF, right? There is RBI regulation to account for and look at AIF in a specific manner. So we took the chance to say on a prudent basis, we need to provide, and so we did build a contingent provision against this. As I mentioned, the fair value of the AIF is almost INR 5 billion more than the carrying book value, but we made 100% provision on a prudent basis. So again, we evaluate this quarter-to-quarter. But that’s the process, that’s a regimented process to look at it quarter-to-quarter. There is no such targeted level of build or release that we have. We will assess it every quarter and certainly at every year-end.
Operator: Next question is from the line of Abhishek Murarka from HSBC.
Abhishek Murarka: Okay. So one question is on the unsecured loans. So after the RBI circular on risk-weighted assets and all. So there’s much that has been happening NBFC as well. What is your approach? So part one, what is your approach to unsecured loans, especially personal loans? Will that slow down? If yes, when you were talking earlier about bringing up the yield on nonmortgage retail assets, how does that affect that strategy? And second, on NBFCs, again, what’s the approach? Will you limit the percentage mix? Or will you sort of limit the absolute exposure? How do you plan to move ahead?
Srinivasan Vaidyanathan: Okay. Yes. Let’s look at the retail unsecured that you alluded to. See, the retail unsecured is extremely profitable product, and we like it. And it has to go through our credit filter. And we’ve been in that for a long time. And one of the best scorecards we believe we have that. If you look at the delinquency profile on that, it’s fantastic. The delinquency profile, the NPA profile is better than the secured book that we have. So we like it. There are times it gets calibrated up and down, and we are confident of growing the book. And let me tell you one important thing on that unsecured as such. Premerger, on the retail book, our unsecured component was 41%. Postmerger, it is about 22%. So if anything, we created more kind of a runway for faster growth.
But when we say faster growth, we are not talking about something that is a 25%, 30% thereabouts kind of rate of growth. For us, faster growth is to go into high teens to 20% type of rate of growth. That’s what we have had in the past. That’s why I’m more than telling you what we will do and trying to tell you what we have done. And we think that, that is what we will do rather than do something new about it. So we have enough headroom, enough runway and opportunity on that. It’s an extremely profitable product. So that’s something to keep in mind on the unsecured. NBFC, see, our approach to NBFC has always been one for lending, we do want that. For corporate houses, part of various NBFCs affiliated to corporate houses, something that we work with because that’s a much broader relationship across the corporate group that we have.
So that is quite profitable, and we like it and we work through that. One thing that I do want to mention is that, yes, the risk weights do add in terms of the capital that is required for it. Irrespective of that, we look at the profitability. They are quite highly profitable at the enhanced risk weight, both ROA or ROE that you see, and we like to go with that.
