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Yes Bank has
reported 45% dip in net profit at Rs 202.43 crore for the quarter ended March
2023 (Q4FY2023). The bank has posted healthy 16% growth in net interest income
(NII), while the core fee income of the bank also improved 41% in Q4FY2023. The
Net Interest Margin (NIM) of the bank jumped to 2.80% in Q4FY2023 compared to 2.50%
in the corresponding quarter of previous year.
On business front, the bank as has posted 11% growth in business
with strong 12% surge in loan book. The asset quality of the bank was stable in
Q4FY2023. Bank has improved the credit to deposit ratio to 93.5% at end March
2023 from 91.8% at end March 2022. The CASA ratio of the bank has declined to 30.8%
at end March 2023 from 31.1% at end March 2022.
Asset quality improves: The bank has improved asset quality in Q4FY2023 with strong provisioning.
The fresh slippages of loans stood at Rs 1196 crore in Q4FY2023
compared with 1610 crore in previous quarter. The segment wise
fresh slippages of loans was contributed retail segment at Rs 697 crore, SME at
Rs 74 crore, mid-corporate at Rs 72 crore and corporate at Rs 352 crore.
The recoveries of NPAs stood at Rs 182 crore, upgradations at Rs 275
crore and the write-off of loans was at Rs 249 crore in Q4FY2023.
Resolution momentum
continues to be strong with total recoveries & upgrades for fy23 at rs 6120
crore - well ahead of guidance of Rs 5000 crore.
Segment wise GNPA ratio for
retail segment stood at 1.3%, SME 1.0%, mid-corporate 0.8% and corporate
banking 4.9% end March 2023.
The standard restructured loan book of the bank declined to Rs 4251
crore end March 2023.
NNPA plus net carrying value of security receipts as % of
advances further decreased to 2.4% v/s 3.0% last quarter.
Provision coverage ratio improved on sequential basis to 62.30% at
end March 2023 compared to 49.40% a quarter ago, while eased from 70.70% a year
ago.
The capital adequacy ratio of the bank stood at 17.9% with Tier I
ratio at 13.3% at end March 2023. RWA to Total Assets at 69.1%
vs. 72.8% in FY22 and 70.9% last quarter
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Asset Quality
Indicators: Yes Bank
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Mar-23
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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4394.57
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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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13
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-84
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Net NPA (Rs Crore)
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1658.09
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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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-16
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-80
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% Gross NPA
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2.17
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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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15
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-1176
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% Net NPA
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0.83
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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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-20
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-370
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% PCR
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62.30
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49.40
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84.00
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82.30
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70.70
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1290
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-840
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% CRAR - Basel III
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17.90
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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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-30
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50
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% CRAR - Tier I -
Basel III
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13.30
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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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30
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170
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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:
Business growth in double digits: The business of the bank
has increased 11% YoY to Rs 420771 crore end March 2023, driven by 12% rise in
advances to Rs 203269 crore. Deposits moved up 10% to Rs 217502 crore at end
March 2023.
CASA deposits ratio improves on sequential basis: The CASA deposits of the
bank declined 9% YoY to Rs 66903 crore at end March 2023. The CASA ratio
declined to 30.8% at end March 2023 compared to 31.1% at end March 2022, while improved
from 29.9% a quarter ago.
The bank opened 13.4 Lakh CASA
Accounts opened in FY23 as against 11.4 Lakh in FY22.
Retail and SME book driving loan growth: Advances growth was
driven by retail loans rising 39% YoY to Rs 90447 crore at end March 2023, while
credit to MSME jumped 29% to Rs 55769 crore at end March 2023. The corporate
credit has declined 25% to Rs 53986 crore end March 2023.
The bank has achieved new sanctions
/ disbursement of Rs 1 lakh crore in FY2023.
Investment book of the bank jumped 48% YoY
to Rs 76888 crore at end March 2023. SLR investment book stood at Rs 65158
crore and Non SLR at Rs 11744 crore end March 2023.
Margins improve: The bank has showed sharp 80 bps YoY jump in cost of deposits to 5.90%,
while yield on advances zoomed 200 bps YoY to 10.20% in Q4FY2023. Thus, the NIM
has improved 30 bps YoY to 2.80%.
Branch expansion: The bank has added 47 branches and 24 ATMs in Q4FY2023, taking overall
tally to 1192 branches and 1301 ATM`s end March 2023.
Book value of the bank stood at Rs 14.2 per share at end March 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 13.4
per share at end March 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 26% increase in the interest earned at Rs 6216.24
crore, while interest expenses increased 31% to Rs 4110.92 crore in Q4FY2023. NII
improved 16% to Rs 2105.32 crore in the quarter ended March 2023.
Healthy growth in the core fee income: Bank has posted strong 41%
growth in core fee income to Rs 1087 crore, while the forex income declined 50%
to Rs 69 crore and the treasury segment witnessed losses of Rs 73 crore. The
overall non-interest income increased 23% to Rs 1082.27 crore in the quarter
ended March 2023.
Expenses ratio up: The operating expenses of the bank increased 19% to Rs 2298.69 crore,
as other expenses moved up 25% to Rs 1444.62 crore, while employee expenses rose
11% to Rs 854.07 crore in Q4FY2023. Cost to income ratio rose to 72.1% in
Q4FY2023 compared with 71.3% in Q4FY2022. The operating profit increased 15% to
Rs 888.90 crore.
Provisions and contingencies jumps: The bank has showed 128%
surge in provisions to Rs 617.56 crore as the loan loss provisions zoomed 478% to
Rs 1311 crore. However, the bank has written back investment provisions of Rs 651
crore and standard asset provisions of Rs 72 crore. The other provisions have
dipped 342% to Rs 29 crore.
Effective tax rate declined to 25.4% in Q4FY2023 from 27.0% in Q4FY2022. Net
Profit fell 45% YoY to Rs 202.43 crore during quarter ended March 2023.
Prashant Kumar, MD &
CEO, YES BANK said, “Over the last three years, the Bank has significantly
progressed on several strategic objectives such as strengthening of Governance
and Compliance Standards, bolstering the Balance Sheet through granularity,
addressing the asset quality concerns, building up a strong liability franchise
and expanding the customer base. At the same time,- with continuous focus on
retail, we have continued to expand our footprints with new Branches, increased
the employee headcount and stepped-up our investments in technology. Our Retail
franchise has now reached a critical scale and is poised for profitable growth.
With the current momentum of accelerated growth, the efficiency gains and
operating leverage will naturally drive the Bank’s profitability upwards. In
addition to this, in order to further accelerate the profitability expansion,
the Bank will be making strategic interventions in the form of calibrated yield
enhancement, higher focus on growth in CA and improvement in cross-sell / fee
growth on the expanded customer base. Moreover, the significant recoveries and
upgrades during the year and particularly Q4 have been utilized for accelerated
provisioning to step-up PCR and normalize credit costs over the near term.”
Financial Performance FY2023:
Bank has posted 33% decline in net profit to Rs 717.40 crore in
the year ended March 2023 (FY2023). The net interest income increased 22% to Rs
7917.57 crore, while non-interest income moved up 20% to Rs 3926.65 crore, pushing
up net total income by 21% to Rs 11844.22 crore in FY2023. The operating
expenses increased 27% to Rs 8661.46 crore, while provision and contingencies
galloped 50% to Rs 2219.85 crore, causing 33% decline in profit before tax to Rs
962.91 crore in FY2023. The cost-to-income ratio improved to 73.1% in FY2023
compared to 70.1% in FY2022. An effective tax rate eased to 25.5% in FY2023
compared to 25.7% in FY2022. The net profit has fell 33% to Rs 717.40 crore in
FY2023.
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Yes Bank: Results
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Particulars
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2303 (3)
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2203 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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6216.24
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4947.53
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26
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22697.43
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19023.51
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19
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Interest Expended
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4110.92
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3128.05
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31
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14779.86
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12525.66
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18
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Net Interest Income
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2105.32
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1819.48
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16
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7917.57
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6497.85
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22
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Other Income
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1082.27
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881.69
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23
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3926.65
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3262.47
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20
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Net Total Income
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3187.59
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2701.17
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18
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11844.22
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9760.32
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21
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Operating Expenses
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2298.69
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1926.94
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19
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8661.46
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6844.39
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27
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Operating Profits
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888.90
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774.23
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15
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3182.76
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2915.93
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9
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Provisions &
Contingencies
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617.56
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271.04
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128
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2219.85
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1480.08
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50
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Profit Before Tax
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271.34
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503.19
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-46
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962.91
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1435.85
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-33
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Provision for tax
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68.91
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135.73
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-49
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245.51
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369.64
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-34
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PAT
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202.43
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367.46
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-45
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717.40
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1066.21
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-33
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EPS*(Rs)
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0.3
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0.5
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0.2
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0.4
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Adj BV (Rs)
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13.4
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9.9
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13.4
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9.9
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* Annualized on current equity of
Rs 5751.01 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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