In This Article:
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Quarterly Profit: INR 553 crore, up 146% YoY and 10% sequentially.
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Return on Assets (RoA): Maintained at 0.5% for the third consecutive quarter.
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Operating Profit Growth: 22% YoY and 10% sequentially.
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Deposit Growth: 18% YoY and 5% quarter-on-quarter.
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CASA Ratio: Improved by 260 basis points YoY and 120 basis points quarter-on-quarter to 32%.
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Net Interest Income: INR 2,200 crores, a growth of 14% YoY.
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Net Interest Margin: Steady at 2.4% compared to last quarter.
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Non-Interest Income: INR 1,407 crores, up 16% YoY and 17% quarter-on-quarter.
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Cost-to-Income Ratio: Improved to 73% from 74.4% in the previous year.
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Gross NPA Ratio: Improved to 1.6% from 1.7% last quarter.
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Provision Coverage Ratio: Improved to 70% from 67.6% last quarter.
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Gross Slippage: INR 1,314 crores, with a slippage ratio of 2.2%.
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Advances Growth: 12.4% YoY, with SME and mid-corporate advances growing at 26% each.
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Capital Adequacy Ratio: CET ratio at 13.2%, total capital adequacy at 16.1%.
Release Date: October 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Yes Bank Ltd (BOM:532648) reported the highest quarterly profit since reconstruction, with a net profit of INR 553 crore, up 146% YoY and 10% sequentially.
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The bank's deposit growth momentum continued with an 18% YoY and 5% quarter-on-quarter growth, with CASA ratio improving by 260 basis points YoY.
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Asset quality showed improvement with the gross NPA ratio declining to 1.6% from 1.7% in the previous quarter, and the provision coverage ratio increased to 70%.
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Net interest income grew by 14% YoY, and non-interest income increased by 16% YoY and 17% quarter-on-quarter.
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The bank's strategic focus on SME and mid-corporate advances resulted in a superior growth rate of 26% each.
Negative Points
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Despite strong financial performance, Yes Bank Ltd (BOM:532648) has not seen significant growth in its share price, raising concerns among investors.
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The unsecured segment, particularly credit cards and personal loans, is contributing to heightened stress, with about 35% to 40% of slippages coming from this segment.
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The bank's net interest margin remains lower compared to peers at 2.4%, with challenges anticipated due to potential interest rate reductions.
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The CET1 ratio slightly decreased from 13.3% to 13.2% due to increased risk weights on certain portfolios.
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The bank's cost-to-income ratio remains high at 73%, indicating room for efficiency improvements.
Q & A Highlights
Q: Despite good performance, there is no significant growth in YES Bank's share price. What actions are being taken by management? Also, will dividends be announced after three consecutive years of profit? A: We focus on sustained performance in business and profitability. The Board evaluates dividend distribution based on our dividend policy. We aim to optimize returns for stakeholders. Regarding share price, we do not comment on stock movements.