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Yes Bank has reported 81% dip in net profit at Rs 51.52 crore on
account of higher provisions for the quarter ended December 2022 (Q3FY2023). The
bank has posted 12% growth in net interest income (NII), while the core fee
income of the bank also improved 44% in Q3FY2023. The Net Interest Margin (NIM)
of the bank improved to 2.50% in Q3FY2023 compared to 2.40% in the
corresponding quarter of previous year.
On business front, the bank as has posted 13% growth
in business with 10% increase in loan book. The asset quality of the bank was
stable in Q3FY2023. Bank has substantially improved the credit to deposit ratio
to 91.1% at end December 2022 from 95.6% at end December 2021. However, the
CASA ratio of the bank has declined to 29.9% at end December 2022 from 30.4% at
end December 2021.
Asset quality improves on sales of NPAs to ARCs:
The bank has sharply
reduced GNPA and NNPA with largest sales of NPAs to ARCs in Q3FY2023.
The
bank has completed assignment of identified pool of stressed assets to the J.C.
Flowers ARC. This is single largest transaction of sale of non-performing
assets in Indian Banking System
GNPA ratio dipped to 2.0% from 12.9% in Q2FY23 and 14.7%
in Q3FY22. NNPA ratio also dipped to 1.0% from 3.6% in Q2FY23 and 5.3% in
Q3FY22.
The fresh slippages of loans stood at Rs 1610 crore
in Q3FY2023 compared with 896 crore in previous quarter. The recoveries of NPAs
stood at Rs 7440 crore, upgradations at Rs 224 crore and the write-off of loans
was at Rs 17462 crore in Q3FY2023.
The standard restructured loan book of the bank
stood at Rs 5279 crore end December 2022.
The securities receipt book of the bank has
jumped to Rs 8853 crore with provision of Rs 5080 crore end December 2022 from
Rs 2123 crore with provisions of Rs 1808 crore end September 2022 on account of
receipts of securities receipt on sales of NPAs to ARCs. The securities receipt
book net of provisions was at Rs 3773 crore end December 2022.
The net stressed asset ratio (NNPA + net
restructured loans + net securities receipts) declined to 5.7% end December 2022
from 6.8% end September 2022 and 9.2% end December 2021.
The capital adequacy ratio of the bank stood at 18.2%
with Tier I ratio at 13.0% at end December 2022.
The bank has completed capital raise of Rs 8900 crore in Q3FY23. Pursuant to this, the Bank received Rs 5093 crore towards Equity Investments and Rs 948 crore towards warrants application. This is the second largest private capital raise transaction to take place in the Indian Banking Sector over the last two decades.
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Asset Quality
Indicators: Yes Bank
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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Dec-21
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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3903.68
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27419.11
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27746.75
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27975.98
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28654.49
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-86
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-86
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-86
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Net NPA (Rs Crore)
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1973.36
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6926.03
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7765.01
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8204.53
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9323.34
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-72
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-76
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-79
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% Gross NPA
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2.02
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12.89
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13.45
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13.93
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14.65
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-1087
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-1191
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-1263
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% Net NPA
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1.03
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3.60
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4.17
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4.53
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5.29
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-257
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-350
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-426
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% CRAR - Basel III
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18.20
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17.30
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17.50
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17.40
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17.70
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90
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80
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50
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% CRAR - Tier I -
Basel III
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13.00
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11.70
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11.90
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11.60
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11.60
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130
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140
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140
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The business of the bank has increased 13% YoY
to Rs 408181 crore end December 2022, driven by 10% rise in advances to Rs 194573
crore. Deposits jumped 16% to Rs 213608 crore at end December 2022.
CASA deposits ratio ease: The CASA deposits of the bank increased 14% YoY
to Rs 63925 crore at end December 2022. The CASA ratio eased to 29.9% at end
December 2022 compared to 30.4% at end December 2021, while declined from 31.0%
a quarter ago.
Double digit loan growth: Advances growth was driven by retail loans
rising 41% YoY to Rs 83769 crore at end December 2022, while credit to MSME
moved up 24% to Rs 51945 crore at end December 2022. The corporate credit has
declined 26% to Rs 55829 crore end December 2022.
Investment
book of the bank increased 28%
YoY to Rs 68382 crore at end December 2022.
Margins improve: The bank has showed 60 bps YoY jump in cost of
deposits to 5.70%, while yield on advances increased 90 bps YoY to 9.00% in
Q3FY2023. NIM has improved 10 bps YoY to 2.50%.
Branch expansion: The bank network of 1145 branches and 1277 ATM`s
end December 2022.
Book value of the bank stood at Rs 14.0 per share at end December 2022, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 13.1
per share at end December 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 20% increase in the interest
earned at Rs 5871.97 crore, while interest expenses increased 24% to Rs 3901.35
crore in Q3FY2023. NII improved 12% to Rs 1970.62 crore in the quarter ended
December 2022.
Healthy growth in the core fee income: Bank has posted strong 44% growth in core fee
income to Rs 898 crore, while the forex income rose 6% to Rs 107 crore and treasury
income jumped 496% to Rs 137 crore, supporting 56% jump in the overall
non-interest income to Rs 1143.21 crore in the quarter ended December 2022.
Stable expenses ratio: The operating expenses of the bank increased 25%
to Rs 2200.20 crore, as other expenses moved up 30% to Rs 1342.8 crore, while
employee expenses increased 17% to Rs 857.4 crore in Q3FY2023. Cost to income
ratio was nearly stable at 70.7% in Q3FY2023 compared with 70.7% in Q3FY2022, helping
the Operating Profit to increase 25% to Rs 913.63 crore.
Provisions and contingencies jump on high
investment provisions: The
bank has showed 125% surge in provisions to Rs 844.75 crore. The loan loss
provisions were reversed amounting to Rs 2001 crore and standard asset
provisions of Rs 57 crore, while investment provisions zoomed 830% to Rs 2902 crore,
Effective tax was flat at 25.2% in Q3FY2023 from 25.2% in Q3FY2022. Net
Profit declined 81% YoY to Rs 51.52 crore during quarter ended December 2022.
Financial Performance 9MFY2023:
Bank has posted 26% decline in net profit to Rs 514.97
crore in the nine months ended December 2022 (9MFY2023). The net interest
income increased 24% to Rs 5812.25 crore, while non-interest income moved up 19%
to Rs 2844.38 crore, pushing up net total income by 23% to Rs 8656.63 crore in
9MFY2023. The operating expenses increased 29% to Rs 6362.77 crore, while
provision and contingencies galloped 33% to Rs 1602.29 crore, causing 26%
decline in the profit before tax to Rs 691.57 crore in 9MFY2023. The
cost-to-income ratio increased to 73.5% in 9MFY2023 compared to 69.7% in
9MFY2022. An effective tax rate rose to 25.5% in 9MFY2023 compared to 25.1% in
9MFY2022. The net profit has declined 26% to Rs 514.97 crore in 9MFY2023.
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Yes Bank: Results
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Particulars
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2212 (3)
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2112 (3)
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Var %
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2212 (9)
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2112 (9)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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5871.97
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4898.31
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20
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16481.19
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14075.98
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17
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19023.51
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20041.84
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-5
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Interest Expended
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3901.35
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3134.33
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24
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10668.94
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9397.61
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14
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12525.66
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12613.23
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-1
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Net Interest Income
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1970.62
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1763.98
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12
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5812.25
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4678.37
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24
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6497.85
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7428.61
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-13
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Other Income
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1143.21
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733.72
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56
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2844.38
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2380.78
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19
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3262.47
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3011.69
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8
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Net Total Income
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3113.83
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2497.70
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25
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8656.63
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7059.15
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23
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9760.32
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10440.30
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-7
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Operating Expenses
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2200.20
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1767.02
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25
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6362.77
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4917.45
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29
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6844.39
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5792.01
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18
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Operating Profits
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913.63
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730.68
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25
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2293.86
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2141.70
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7
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2915.93
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4648.29
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-37
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Provisions &
Contingencies
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844.75
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374.64
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125
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1602.29
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1209.04
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33
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1480.08
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9383.36
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-84
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Profit Before Tax
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68.88
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356.04
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-81
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691.57
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932.66
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-26
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1435.85
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-4735.07
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LP
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Provision for tax
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17.36
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89.61
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-81
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176.60
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233.90
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-24
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369.64
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-1272.84
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PL
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PAT
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51.52
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266.43
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-81
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514.97
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698.76
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-26
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1066.21
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-3462.23
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LP
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EPS*(Rs)
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0.1
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0.4
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0.2
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0.3
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0.4
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-
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Adj BV (Rs)
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13.1
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9.5
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13.1
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9.5
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9.9
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9.3
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* Annualized on current equity of
Rs 5750.88 crore. Face Value: Rs 2, Figures in Rs crore
PL:Profit to Loss, LP: Loss to Profit
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Source: Capitaline Corporate
Database
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