YES BANK’s Net Profit grows 47%

One of the highlights during Q2 included the launch of next gen mobile banking app 'iris by YES BANK': Prashant Kumar

Prashant Kumar, Managing Director & CEO, YES BANK

FinTech BizNews Service 

Mumbai, 21 October, 2023:  Net Profit of YES BANK for Q2FY24 stands at INR 225 Crs, it has grown 47.4% Y-o-Y.

•Non-Interest Income at INR 1,210 Crs, up 38.4% Y-o-Y and 6.0% Q-o-Q

•Provision Costs (non-tax) down 14.1% Y-o-Y

Sustained momentum in Balance Sheet Granularity

• Advances growth at 11.2% Y-o-Y (adjusted for ARC transaction)

• Retail Advances cross INR 1 Lac Crore during the quarter, up 27.2% Y-o-Y
• SME Advances cross INR 30k Crore during the quarter up 25.0% Y-o-Y
• Mid Corporate Segment Advances up 26.7% Y-o-Y
• New Disbursements1 of over INR 28,000 Crs in Q2FY24

Deposits grew 17.2% Y-o-Y and 6.8% Q-o-Q

• CASA Ratio stable Q-o-Q at 29.4% despite challenging environment
• 391k CASA Accounts opened during the quarter

All around improvement in Asset Quality parameters

• GNPA ratio at 2.0% vs. 12.9% in Q2FY23 and flat Q-o-Q
• NNPA ratio lower at 0.9% v/s. 3.6% last year and 1.0% last quarter
• Net carrying value of SRs as % of Advances at 1.1% in Q2FY24 vs. 1.3% last quarter
• Provision Coverage Ratio (PCR) at 56.4% v/s. 48.4% last quarter. Including Technical W/O, PCR at 72.1% v/s. 67.8%
• Resolution Momentum strong with Total Recoveries & Upgrades for Q2FY24 at INR 1,352 Crs. H1FY24 cumulative recoveries and upgrades at INR 2,553 Crs

Commenting on the results and financial performance, Prashant Kumar, Managing Director & CEO, YES BANK, said, “Q2FY24 performance is a testament to the strength of the Core Franchise that the Bank has built through significant strategic interventions during last three years. Amidst a challenging environment with respect to interest rates, deposit growth slowdown, as well as tightening liquidity, the Bank has managed to deliver Y-o-Y expansion in both operating and net profitability. At the same time, the fortification of Balance Sheet from Asset Quality standpoint continues, supported by robust redemptions from the security receipts. The Bank has also been consistently putting together the key pieces of the puzzle as it accelerates along its path of profitability expansion. Few such highlights during the quarter included the launch of our next gen mobile banking app ‘iris by YES BANK’; setup of a dedicated Strategy & Transformation Office; and further strengthening of our Management Team through 2 key senior level hires viz. Head of Wholesale Banking and Head of Strategy & Transformation.”

Balance Sheet

• Net Advances at INR 209,106 Crs, registered growth of 8.7% Y-o-Y. Adjusted for the ARC Transaction, Advances growth at 11.2% Y-o-Y
• Total Balance Sheet grew 9.2% Y-o-Y
• CD Ratio at 89.2% vs. 96.1% in Q2FY23 and 91.3% last quarter
• Total Deposits at INR 234,360 Crs, up 17.2% Y-o-Y & 6.8% Q-o-Q. Excluding CDs, Deposits growth at 18.3% Y-o-Y

• CASA ratio at 29.4% vs. 31.0% in Q2FY23 and flattish Q-o-Q
• 391K new CASA Accounts opened in Q2FY24
• Retail and Small Business Deposits (Gross LCR Definition) grew 18.8% Y-o-Y

• Average LCR during the quarter remains healthy at 120.9%; LCR as on September 30, 2023 at 117.1%. CET 1 ratio at 13.1%2: Total CRAR at 17.3%2

• RWA to Total Assets at 70.6% vs. 71.2% in Q2FY23 and 69.1% in Q1FY24
• Investments at INR 76,204 Crs up 31.4% Y-o-Y
• Borrowings at INR 70,726 Crs down 7.5% Y-o-Y