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Yes Bank has reported 10% growth in net profit
at Rs 342.52 crore for the quarter ended June 2023 (Q1FY2024). The bank has
posted 8% growth in net interest income (NII), while the core fee income of the
bank improved 48% in Q1FY2024. The Net Interest Margin (NIM) of the bank
improved to 2.50% in Q1FY2024 compared to 2.40% in the corresponding quarter of
previous year, but declined from 2.8% in Q4FY2023.
On business front, the bank as has posted 11% growth
in business with 7% rise in loan book. The asset quality of the bank weakened
marginally in Q1FY2024. Bank has reduced the credit to deposit ratio to 91.3% at
end June 2023 from 96.4% at end June 2022. CASA ratio of the bank has declined
to 29.4% at end June 2023 from 30.8% at end June 2022.
Asset quality marginally moderates: The bank has witnessed increase in NNPA in
Q1FY2024.
The fresh slippages of loans stood at Rs 1430 crore
in Q1FY2024 compared with 1196 crore in previous quarter and Rs 1072 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 186 crore,
upgradations at Rs 480 crore and the write-off of loans was at Rs 1086 crore in
Q1FY2024.
The standard restructured loan book of the bank
stood at Rs 4214 crore end June 2023 compared with Rs 4251 crore end March
2023.
Provision coverage ratio declined to 67.80% at
end June 2023 compared to 72.30% a quarter ago and 82.30% a year ago.
The capital adequacy ratio of the bank stood at 18.2%
with Tier I ratio at 13.6% at end June 2023.
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Asset Quality
Indicators: Yes Bank
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Jun-23
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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4072.67
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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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-7
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-85
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Net NPA (Rs Crore)
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2100.69
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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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27
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-73
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% Gross NPA
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2.00
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2.20
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2.02
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12.89
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13.40
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-20
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-1140
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% Net NPA
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1.00
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0.80
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1.03
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3.60
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4.20
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20
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-320
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% PCR
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67.80
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72.30
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49.40
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74.70
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82.30
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-450
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-1450
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% CRAR - Basel III
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18.20
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17.90
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18.00
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17.10
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17.50
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30
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70
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% CRAR - Tier I -
Basel III
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13.60
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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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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:
Double digit business growth: The business of the bank has increased 11% YoY
to Rs 419573 crore end June 2023, driven by 7% rise in advances to Rs 200204 crore.
Deposits rose 14% to Rs 219369 crore at end June 2023.
CASA deposits ratio declines: The CASA deposits of the bank increased 8% YoY
to Rs 64567 crore at end June 2023. The current account deposits increased 27% to
Rs 30477 crore, while saving account deposits declined 4% to Rs 34090 crore end
June 2023. The CASA ratio eased to 29.4% at end June 2023 compared to 30.8% at
end June 2022 as well as 30.8% end March 2023.
Strong loan growth: Advances growth was driven by retail loans
rising 31% YoY to Rs 94445 crore at end June 2023, while credit to MSME jumped 26%
to Rs 56241 crore at end June 2023. The corporate credit has declined 29% to Rs
49518 crore end June 2023.
Investment
book of the bank jumped 21% YoY
to Rs 70971 crore at end June 2023.
Margins up yoy: The bank has showed 110 bps YoY jump in cost of
deposits to 6.20%, while yield on advances surged 200 bps YoY to 10.10% in
Q1FY2024. NIM has improved 10 bps YoY to 2.50%, but declined 30 bps qoq from
2.8% in Q4FY2023.
Branch expansion: The bank has added 20 branches and 26 ATMs in
Q1FY2024, taking overall tally to 1212 branches and 1327 ATM`s end June 2023.
Book value of the bank stood at Rs 14.3 per share at end June 2023, while the
adjusted book value (net of NNPA and 10% of restructured advances) was Rs 13.4 per
share at end June 2023.
Quarterly Performance
Moderate rise in NII: Bank has recorded 25% increase in the interest
earned at Rs 6443.22 crore, while interest expenses increased 35% to Rs 4443.59
crore in Q1FY2024. NII improved 8% to Rs 1999.63 crore in the quarter ended
June 2023.
Healthy growth in the core fee income: Bank has posted strong 48% growth in core fee
income to Rs 917 crore, while the treasury income rebounded to Rs 161 crore
leading to 54% surge in the overall non-interest income to Rs 1141.12 crore in
the quarter ended June 2023. The forex income declined 61% to Rs 63 crore.
Expenses ratio declines: The operating expenses of the bank increased 16%
to Rs 2322.34 crore, as other expenses moved up 17% to Rs 1376.66 crore, while
employee expenses increased 14% to Rs 945.68 crore in Q1FY2024. Cost to income
ratio declined to 73.9% in Q1FY2024 compared with 77.2% in Q1FY2023, helping
the Operating Profit to increase 39% to Rs 818.41 crore.
Provisions and contingencies jump: The bank has showed 106% surge in provisions to
Rs 360.30 crore. The loan loss provisions jumped 112% to Rs 314 crore, while investment
provisions galloped 66% to Rs 144 crore. However, the bank has written back standard
asset provisions of Rs 72 crore and other provisions of Rs 26 crore.
Effective tax rate was flat at 25.2% in Q1FY2024 from 25.2% in Q1FY2023. Net
Profit rose by 10% YoY to Rs 342.52 crore during quarter ended June 2023.
Prashant Kumar, Managing
Director & CEO, YES BANK said, “Q1FY24 was a steady quarter where we have
demonstrated significant progress in line with our Strategic Objectives. While
the Balance Sheet granularity momentum continued, we also delivered a strong
growth in our Fee Income while containing our Operating and Credit Costs. With
the focus of the Bank now firmly aligned towards improving the profitability of
the franchise, over the coming quarters, we will continue to work on levers
which further accelerate this momentum such as improvement in NIMs and CASA
Ratio, reducing the drag from legacy PSL requirements, further cross-sell and
product penetration into our fast-expanding customer base, while continuing to
maintain strict controls over costs. A key highlight during the quarter was the
launch of our refreshed brand identity. With a strong foundation firmly in
place, it was the opportune time to make the next strategic move of reimagining
the YES BANK brand. As part of the refreshed identity, a vibrant new logo has
been launched which carries forward the visual DNA of the Bank and builds on
it. This has been accompanied with an integrated 360-degree campaign with the
positioning - ‘Life Ko Banao Rich’ that resonates with the evolving needs and
aspirations of our customers. The initial feedback to this campaign has been
extremely positive, and we believe that this will not only instill enthusiasm
and confidence among our stakeholders, but also enhance the pace of our new
customer acquisition.”
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 13% to Rs 3685.06 crore, pushing
up net total income by 19% to Rs 11602.63 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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2306 (3)
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2206 (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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6443.22
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5134.85
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25
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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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4443.59
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3284.57
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35
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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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1999.63
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1850.28
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8
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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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1141.12
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741.19
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54
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3685.06
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3262.47
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13
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Net Total Income
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3140.75
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2591.47
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21
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11602.63
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9760.32
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19
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Operating Expenses
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2322.34
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2001.64
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16
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8419.87
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6844.39
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23
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Operating Profits
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818.41
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589.83
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39
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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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360.30
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174.73
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106
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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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458.11
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415.10
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10
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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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115.59
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104.47
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11
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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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342.52
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310.63
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10
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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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0.5
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0.4
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0.3
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0.4
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Adj BV (Rs)
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13.4
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10.3
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13.1
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9.9
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* Annualized on current equity of
Rs 5751.18 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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