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Yes Bank has reported 47% growth in net profit
at Rs 225.21 crore for the quarter ended September 2023 (Q2FY2024). The core
fee income of the bank improved 49% in Q2FY2024. However, the bank has
witnessed 3% decline in net interest income (NII), as Net Interest Margin (NIM)
slipped to 2.30% in Q2FY2024 compared to 2.60% in the corresponding quarter of
previous year.
On business front, the bank as has posted 13%
growth in business with 9% increase in loan book. The asset quality of the bank
was stable in Q2FY2024. Bank has substantially improved the credit to deposit
ratio to 89.2% at end September 2023 from 96.1% at end September 2022. However,
the CASA ratio of the bank has declined to 29.4% at end September 2023 from
31.0% at end September 2022.
Asset quality stable: The bank has maintained stable asset quality in
Q2FY2024.
The fresh slippages of loans stood at Rs 1199
crore in Q2FY2024 compared with 1430 crore in previous quarter and Rs 896 crore
in the corresponding quarter last year.
The recoveries of NPAs stood at Rs 122 crore,
upgradations at Rs 534 crore and the write-off of loans was at Rs 297 crore in
Q2FY2024.
The standard restructured loan book of the bank declined
to Rs 4057 crore end September 2023.
Provision coverage ratio improved to 72.1% at
end September 2023 compared to 67.80% a quarter ago and eased from 74.70% a
year ago.
The capital adequacy ratio of the bank stood at
17.1% with Tier I ratio at 11.7% at end September 2023.
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Asset Quality
Indicators: Yes Bank
|
|
|
Sep/23
|
Jun/23
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Mar/23
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Dec/22
|
Sep/22
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Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
4319.03
|
4072.67
|
4394.57
|
3903.68
|
27419.11
|
6
|
-2
|
-84
|
|
Net NPA (Rs Crore)
|
1885.19
|
2100.69
|
1658.09
|
1973.36
|
6926.03
|
-10
|
14
|
-73
|
|
% Gross NPA
|
2.00
|
2.00
|
2.20
|
2.02
|
12.90
|
0
|
-20
|
-1090
|
|
% Net NPA
|
0.90
|
1.00
|
0.80
|
1.03
|
3.60
|
-10
|
10
|
-270
|
|
% PCR
|
72.10
|
67.80
|
72.30
|
49.40
|
74.70
|
430
|
-20
|
-260
|
|
% CRAR - Basel III
|
17.10
|
18.20
|
17.90
|
18.00
|
17.10
|
-110
|
-80
|
0
|
|
% CRAR - Tier I -
Basel III
|
11.70
|
13.60
|
13.30
|
13.00
|
11.70
|
-190
|
-160
|
0
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Double digit business growth: The business of the bank has increased 13% YoY
to Rs 443466 crore end September 2023, driven by 9% rose in advances to Rs
209106 crore. Deposits surged 17% to Rs 234360 crore at end September 2023.
CASA deposits ratio declines: The CASA deposits of the bank increased 11% YoY
to Rs 68957 crore at end September 2023. The current account deposits surged 18%
to Rs 32433 crore, while saving account deposits rose 5% to Rs 36524 crore end
September 2023. The CASA ratio eased to 29.4% at end September 2023 compared to
31.0% at end September 2022, while remained steady from 29.4% a quarter ago. The
term deposits have increased 20% to Rs 165403 crore end September 2023.
Strong retail loan growth: Advances growth was driven by retail loans
rising 27% YoY to Rs 100441 crore at end September 2023, while MSME credit
surged 26% to Rs 60273 crore at end September 2023. The corporate credit has
declined 26% to Rs 48393 crore end September 2023.
Investment
book of the bank jumped 31%
YoY to Rs 76204 crore at end September 2023.
Margins decline: The bank has showed 100 bps YoY jump in cost of
deposits to 6.30%, while yield on advances increased 160 bps YoY to 10.10% in
Q2FY2024. The NIM has dipped 30 bps YoY to 2.30%.
Branch expansion: The bank has reduced 14 branches and added 18
ATMs in Q2FY2024, taking overall tally to 1198 branches and 1345 ATM`s end
September 2023.
Book value of the bank stood at Rs 14.1 per share at end September 2023,
while the adjusted book value (net of NNPA and 10% of restructured advances)
was Rs 13.3 per share at end September 2023.
Quarterly Performance
NII declines, as NIM narrows: Bank has recorded 23% increase in the interest
earned at Rs 6710.70 crore, while interest expenses increased 37% to Rs 4785.61
crore in Q2FY2024. NII declined 3% to Rs 1925.09 crore in the quarter ended
September 2023.
Healthy growth in the core fee income: Bank has posted strong 49% growth in core fee
income to Rs 1093 crore, while the treasury income surged 1167% to Rs 38 crore
leading 38% surge in the overall non-interest income to Rs 1209.98 crore in the
quarter ended September 2023. However, the forex income declined 42% to Rs 79
crore in Q2FY2024.
Expenses ratio rises: The operating expenses of the bank increased 12%
to Rs 2333.74 crore, as other expenses moved up 15% to Rs 1442 crore, while
employee expenses increased 8% to Rs 891.74 crore in Q2FY2024. Cost to income
ratio increased to 74.4% in Q2FY2024 compared with 72.4% in Q2FY2023, allowing only
1% growth in the Operating Profit to Rs 801.33 crore.
Provisions and contingencies decline: The bank has showed 14% decline in provisions to
Rs 500.38 crore. The loan loss provisions jumped 46% to Rs 767 crore, while the
bank has written back investment provisions of Rs 286 crore and standard asset
provisions of Rs 39 crore. The other provisions rebounded to Rs 58 crore.
Effective tax rate declined to 25.2% in Q2FY2024 from 26.4% in Q2FY2023. Net
Profit rose by 47% YoY to Rs 225.21 crore during quarter ended September 2023.
Financial Performance H1FY2024:
Bank has posted 23% increase in net profit to Rs
567.73 crore in the half year ended September 2023 (H1FY2024). The net interest
income increased 2% to Rs 3924.72 crore, while non-interest income moved up 46%
to Rs 2351.10 crore, pushing up net total income by 15% to Rs 6275.82 crore in
H1FY2024. The operating expenses increased 14% to Rs 4656.08 crore, while
provision and contingencies galloped 14% to Rs 860.68 crore, allowing profit
before tax to increase 22% to Rs 759.06 crore in H1FY2024. The cost-to-income
ratio improved to 74.2% in H1FY2024 compared to 74.7% in H1FY2023. An effective
tax rate declined to 25.2% in H1FY2024 compared to 25.6% in H1FY2023. The net
profit has increased 23% to Rs 567.73 crore in H1FY2024.
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Yes Bank: Results
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|
Particulars
|
2309 (3)
|
2209 (3)
|
Var %
|
2309 (6)
|
2209 (6)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Interest Earned
|
6710.70
|
5474.38
|
23
|
13153.92
|
10609.23
|
24
|
22697.43
|
19023.51
|
19
|
|
Interest Expended
|
4785.61
|
3483.02
|
37
|
9229.20
|
6767.59
|
36
|
14779.86
|
12525.66
|
18
|
|
Net Interest Income
|
1925.09
|
1991.36
|
-3
|
3924.72
|
3841.64
|
2
|
7917.57
|
6497.85
|
22
|
|
Other Income
|
1209.98
|
874.15
|
38
|
2351.10
|
1615.34
|
46
|
3685.06
|
3262.47
|
13
|
|
Net Total Income
|
3135.07
|
2865.51
|
9
|
6275.82
|
5456.98
|
15
|
11602.63
|
9760.32
|
19
|
|
Operating Expenses
|
2333.74
|
2075.11
|
12
|
4656.08
|
4076.75
|
14
|
8419.87
|
6844.39
|
23
|
|
Operating Profits
|
801.33
|
790.40
|
1
|
1619.74
|
1380.23
|
17
|
3182.76
|
2915.93
|
9
|
|
Provisions &
Contingencies
|
500.38
|
582.81
|
-14
|
860.68
|
757.54
|
14
|
2219.85
|
1480.08
|
50
|
|
PBT
|
300.95
|
207.59
|
45
|
759.06
|
622.69
|
22
|
962.91
|
1435.85
|
-33
|
|
Provision for tax
|
75.74
|
54.77
|
38
|
191.33
|
159.24
|
20
|
245.51
|
369.64
|
-34
|
|
PAT
|
225.21
|
152.82
|
47
|
567.73
|
463.45
|
23
|
717.40
|
1066.21
|
-33
|
|
EPS*(Rs)
|
0.3
|
0.2
|
|
0.4
|
0.3
|
|
0.2
|
0.4
|
|
|
Adj BV (Rs)
|
13.3
|
10.7
|
|
13.3
|
10.7
|
|
13.1
|
9.9
|
|
|
* Annualized on current equity of
Rs 5751.6 crore. Face Value: Rs 2, Figures in Rs crore
|
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Source: Capitaline Corporate
Database
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|