Results     24-Jan-22
Analysis
Yes Bank
Asset quality remains a problem
Yes Bank has posted strong 77% surge in the net profit to Rs 266.43 crore in the quarter ended December 2021 (Q3FY2022). Interest income has declined 7.95% to Rs 4,898.31 crore. Interest expense rose 13.53% to Rs 3,134.33 crore. Hence net interest income fell 31.11% to Rs 1,763.98 crore.

With other income showing a decline of 32.53% to Rs 733.72 crore, net total income dipped 31.53% Rs 2,497.70 crore. Operating expenses rose 20.03% to Rs 1767.02 crore. As a result, profit before provisions fell 66.42% to Rs 730.68 crore.

However, the provisions & contingencies plunged 82.07% to Rs 374.64 crore, leading to 311% surge in Profit before tax to Rs 356.04 crore compared to Profit of Rs 86.70 crore.

Provision for tax was debit of Rs 89.61 crore, compared to credit of Rs 64.01 crore. Net profit rose 77% to Rs 266.43 crore.

On sequential basis, the bank has continued to report improving performance. The bank has recorded 5% growth in interest income on sequential basis, while the net interest income has increased 17%. Bank has also recorded 8% growth on qoq basis in the operating profit. Net profit has increased 18% on sequential basis in Q3FY2022.

Asset quality improves, but remains a problem

GNPA ratio declined 14.7% from 15.0% last quarter. Fresh Slippages declined significantly qoq at Rs 978 crore from Rs 1783 crore last quarter.

Resolution Momentum continues with Rs 610 Cr of cash Recoveries and Rs 573 crore of upgrades in Q3FY22.

Corporate slippages lower at Rs 435 crore against Rs 750 crore last quarter. Retail slippages declined to Rs 388 crore from Rs 888 crore last quarter.

NNPA ratio eased to 5.3% from 5.5% last quarter

The restructured loan book of the bank rose to Rs 6878 crore end December 2021 from Rs 6184 crore end September 2021.

NPA Provision Coverage Ratio at 79.3% end December 2021.

Total CRAR stood at 17.7% with CET 1 at 11.6% end December 2021.

Asset Quality Indicators: Yes Bank

 

Dec-21

Sep-21

Jun-21

Mar-21

Dec-20

Variation

QoQ

YTD

YoY

Gross NPA (Rs Crore)

28654.49

28740.59

28505.95

28609.53

29546.54

0

0

-3

Net NPA (Rs Crore)

9323.34

9586.25

9454.94

9813.36

6856.58

-3

-5

36

% Gross NPA

14.65

14.97

15.60

15.41

15.36

-32

-76

-71

% Net NPA

5.29

5.55

5.78

5.88

4.04

-26

-59

125

% PCR

79.30

78.90

79.30

78.60

81.50

40

70

-220

% CRAR - Basel III

17.70

17.60

17.80

17.50

19.40

10

20

-170

% CRAR - Tier I - Basel III

11.60

11.50

11.60

11.20

13.10

10

40

-150

Variation in basis points for figures given in percentages and in % for figures in Rs crore

Business highlights:

Balance sheet crossed Rs 3 lakh crore for first times since September 2019. Balance Sheet grew 6% Qoq.

Net Advances rose 2% qoq to Rs 176241 crore end December 2021. Deposits increased 4% qoq to Rs 184288 crore. Retail : Corporate Mix improved by 300 bps qoq to 57:43.

The bank has sustained momentum in New Business Generation with retail disbursements at Rs 9313 crore, SME Disbursements at Rs 4940 crore, wholesale disbursements at Rs 4760 crore etc.

CASA continues to grow at 2x rate of overall deposits growth. CASA ratio improved to 30.4% from 29.4% last quarter, improvement of 100 bps. The bank has opened more than 1 lakh CASA accounts in the month December 2021.

Average LCR during the quarter remains healthy at 123.8%. LCR stood at 130.0% end December 2021.

Expanding geographical presence, the bank has opened 22 new branches and increased 1,065 new YES Bankers since March 2021. Bank has network of 1094 branches and 1221 ATMs at end December 2021.

NIMs at 2.4% up 25bps qoq led by 30bps reduction in Cost of Deposits, at 4.9% - below 5% for the first time.

The non-Interest income stood at Rs 734 crore with highest ever retail fee income at Rs 447 crore.

The bank has continued Leadership in Technology: UPI: Rank 1 in P2M transactions, 42% volume market share, IMPS  Rank 1 Remitter Bank.

Book Value per share stood at Rs 13.50, while the adjusted book value net of NNPA and 10% of restructured loans stood at Rs 9.8 end December 2021.

Financial Performance 9MFY2022

Yes Bank Interest income has declined 12.31% to Rs 14,075.98 crore. Interest expense fell 2.22% to Rs 9,397.61 crore. Hence net interest income fell 27.38% to Rs 4,678.37 crore.

With other income showing a rise of 2.52% to Rs 2380.78 crore, net total income decreased 19.46% Rs 7,059.15 crore. Operating expenses rose 17.81% to Rs 4917.45 crore. As a result, profit before provisions fell 53.34% to Rs 2141.7 crore. Provisions & Contingencies decreased 71.69% to Rs 1209.04 crore, leading to Profit before tax reported profit of Rs 932.66 crore compared to Profit of Rs 319.63 crore.

There were no extraordinary items. PBT after EO reported profit of Rs 932.66 crore compared to Profit of Rs 319.63 crore. Provision for tax was debit of Rs 233.9 crore, compared to credit of Rs 5.89 crore. Net profit rose 114.66% to Rs 698.76 crore.

The cost to income ratio rose to 69.66% as on 31 December 2021 from 47.63% as on 31 December 2020.

Yes bank: Results

  Particulars

2112 (3)

2012 (3)

Var %

2112 (9)

2012 (9)

Var %

2103 (12)

2003 (12)

Var %

Interest Earned

4898.31

5321.11

-8

14075.98

16052.58

-12

20041.84

26066.61

-23

Interest Expended

3134.33

2760.69

14

9397.61

9610.65

-2

12613.23

19261.37

-35

Net Interest Income

1763.98

2560.42

-31

4678.37

6441.93

-27

7428.61

6805.24

9

Other Income

733.72

1087.42

-33

2380.78

2322.36

3

3011.69

3441.49

-12

Net Total Income

2497.70

3647.84

-32

7059.15

8764.29

-19

10440.30

10246.73

2

Operating Expenses

1767.02

1472.14

20

4917.45

4174.20

18

5792.01

6729.21

-14

Operating Profits

730.68

2175.70

-66

2141.70

4590.09

-53

4648.29

3517.52

32

Provisions & Contingencies

374.64

2089.00

-82

1209.04

4270.46

-72

9383.36

32758.43

-71

PBT Before EO

356.04

86.70

311

932.66

319.63

192

-4735.07

-29240.91

-84

EO

0.00

0.00

-

0.00

0.00

-

0.00

6296.94

-

PBT after EO

356.04

86.70

311

932.66

319.63

192

-4735.07

-22943.97

-

Provision for tax

89.61

-64.01

-240

233.90

-5.89

-4071

-1272.84

-6525.95

-80

PAT

266.43

150.71

77

698.76

325.52

115

-3462.23

-16418.02

-79

EPS*(Rs)

0.4

0.2

 

0.4

0.2

 

-

-

 

* Annualized on current equity of Rs 5010.98 crore. Face Value: Rs 2 per share, Figures in Rs.crore,

Source: Capitaline Corporate Database

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