Despite witnessing a deterioration of asset quality in the June quarter, private sector lender Yes Bank reported a 33% year-on-year increase in its net profit for the quarter at R731.80 crore on the back of a surge in non-interest income and higher net interest income. The bank also announced that it had received an in-principle approval from the Securities and Exchange Board of India to sponsor a mutual fund and set up an asset management company and a trustee company. Speaking to journalists after the results, managing director and chief executive officer Rana Kapoor touched upon why the bank's operating expenses increased during the quarter, his outlook on the bank\u2019s net interest margin (NIM) and the $1-billion fund-raising plan it had chalked out in June. Excerpts. You have already announced your plans of raising $1 billion of capital during the current financial year. How will the fund-raising take place and by when? Some of you will recall that we did our qualified institutional placement (QIP) of $225 million in January 2010 when our share price was R269.50 apiece, and the price has increased by around four and a half times thereafter. Our last QIP of $500 million in May 2014, which got subscribed five times in seven-and-a-half hours, was done at a price of around R550 per share. Now even that has doubled. So yes, we have reasons to believe that we need a QIP hat-trick. The $1 billion will be entirely raised through a QIP. We are already in talks with investors and the QIP will happen before March 2017. By when will you be launching Yes Bank credit cards? We will be launching our credit cards next week and with that, we will have completed our retail product suite. The card will be launched in seven variants with a view of targeting customers across categories. Your operating expenses have gone up significantly this quarter. Any particular reason you would attribute this to? Last year in June, only for that one quarter, our cost-to-income was 43.4%. This quarter it came down to 41.1%. Typically, June has always been a higher cost-to-income quarter because of salary revisions, bonus allocations, etc. Some of it is budgeted and some of it is in excess of the budget. So, usually we find that June as a quarter is not necessarily reflective of a full-year behaviour and the medium-to-longer term target of the bank, up till 2020, is to keep our cost-to-income contained anywhere between 39% and 42%. What is your view on the bank\u2019s net interest margin (NIM) going ahead? Our NIM at the moment is around 3.4%, same as in the March quarter. On a year-on-year basis it has expanded by around 10 basis points. Going ahead, NIM is likely rise further to around 4% levels once our current account and savings account (CASA) ratio touches 40%.