In This Article:
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Pre-Provisioning Operating Profit (PPOP): 25% year-over-year growth and 10.6% sequential growth, reaching 1,079 crores.
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Net Interest Margin (NIM): 2.4% for the quarter.
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Total Deposits: 2.77 lakh crores, up 14.6% year-over-year.
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CASA Ratio: Improved by nearly 350 basis points over the last four quarters.
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Fee Income: 1,512 crores, up 26.6% year-over-year and 7.5% sequentially.
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Operating Expenses: 2,657 crores, up 13.2% year-over-year and 0.9% sequentially.
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Advances Growth: 4.1% sequentially and 12.6% year-over-year.
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Net NPA: 0.6% of advances.
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Recovery and Resolution: 1,843 crores for the quarter, with a cumulative 4,400 crores for the nine months of the fiscal year.
Release Date: January 25, 2025
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 a 25% year-over-year increase in pre-provisioning operating profits, marking the second consecutive quarter of operating profit expansion.
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The bank's CASA (Current Account Savings Account) ratio improved by nearly 350 basis points over the last four quarters, reflecting strong customer trust and acquisition.
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Yes Bank Ltd (BOM:532648) launched a new super app for businesses, enhancing its digital offerings and potentially boosting CASA and cross-sell opportunities.
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The bank achieved a strong recovery and resolution of 1,843 crores in the quarter, contributing to a cumulative recovery of over 4,400 crores for the financial year.
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Net interest margins remained stable at 2.4%, despite industry headwinds, indicating effective management of interest rate pressures.
Negative Points
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Retail segment continues to operate at a loss, with higher provisioning impacting profitability.
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Credit card slippages are rising, despite a slowdown in book growth, indicating potential risk in the unsecured lending segment.
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The bank's net interest margins have been flat for the last two quarters, despite improvements in CASA and reduction in high-cost deposits.
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There is a need for further improvement in the cost-to-income ratio, particularly in the corporate segment, due to competitive loan pricing.
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The bank's advances growth was moderate at 4.1% sequentially, with retail advances showing a decline, reflecting recalibration efforts.
Q & A Highlights
Q: Can you explain the trends in slippages for personal loans (PL) and credit cards, given the differing growth rates? A: Rajan Pental, Executive Director, explained that credit card growth appears higher due to the nature of the product, which builds up utilization over time. Both PL and credit cards are showing stabilization in slippages. The bank has recalibrated its scorecards for PL, and both products are expected to stabilize further with improved sourcing quality.