Story By The Daily Bharat Express- Business (Digi-Desk): Private lender Yes Bank disclosed its results on Saturday for the December quarter of FY24, wherein it said that its net profit stood at Rs 231.6 crore as against Rs 51.5 crore clocked a year ago, which is a 349.7 per cent jump. Net interest income rose 2.4 per cent YoY to Rs 2,017 crore.
The bank’s gross non-performing assets (NPA) or bad loans stood at 2.0 per cent, which is same as the last year. On the other hand, net NPA for the quarter was slightly down at 0.9 percent as compared to 1.0 per cent in Q3 FY23.
In absolute terms, Yes Bank’s Gross NPAs was Rs 4,457 crore from Rs 4,319 crore in the September quarter, while net NPA rose to Rs 1,934 crore from Rs 1,885 crore sequentially.
Yes Bank’s capital adequacy ratio under Basel III norms stood at 16 per cent as of December-end, compared to 18 per cent in Q3 FY23 and 17.1 per cent in the July-September quarter this fiscal. The net tax outgo for the quarter was Rs 78 crore, more than three times a year ago. It was Rs 17 crore in Q3 FY23.
One of the factors for the massive jump in profitability is due to provisions falling over the same time period. The bank provided Rs 554.7 crore for the Q3 FY24, compared to the Rs 844.7 crore it had in the December quarter of FY23. However, provisions were higher compared to the September quarter figure of Rs 500 crore.
> Net Advances at INR 2,17,523 Cr, registered growth of 11.8% Y-o-Y
> Sustained improvement in Granularity – Retail & SME: Mid Corp.: Corp. mix at 63:14:23 vs. 58:13:29 last year and 63:14:23 last quarter
> Retail Advances mix at 47.4% vs. 44.0% in Q3 FY23 and 48.0% last quarter
> New Sanctions / Disbursements of INR 28,498 Cr in Q3 FY24 o Gross Retail Assets Disbursements of INR 9,769 Cr in Q3 FY24
> Rural Disbursements of INR 1,126 Cr o SME Disbursements1 of INR 8,265 Cr
> Mid Corporate Disbursements of INR 1,108 Cr
> Total Balance Sheet grew 10.7% Y-o-Y § CD Ratio at 89.9% vs 89.7% in Q3 FY23 and 89.2% last quarter
> Total Deposits at INR 2,41,831 Cr, up 13.2% Y-o-Y and 3.2% Q-o-Q
> CASA ratio at 29.7% vs. 29.9% in Q3 FY23 and 29.4% Q-o-Q
> 3.98 lakh new CASA Accounts opened in Q3 FY24
> Retail and Small Business Deposits (Gross LCR Definition) grew 16.8% Y-o-Y
> Average Quarterly LCR during the quarter remains healthy at 118.4%; LCR as on December 31, 2023 at 117.8% § CET 1 ratio at 12.6%2: Total CRAR at 16.3%2
> RWA to Total Assets at 71.1% vs. 71.0% in Q3 FY23 and 70.7% in Q2 FY24
> Investments at INR 79,333 Cr up 16.0% Y-o-Y
> Borrowings at INR 79,381 Cr up 15.2% Y-o-Y
Though the numbers were lower than analysts’ expectations. Emkay Global expected YES Bank to report a 706 per cent YoY surge in net profit at Rs 415.10 crore against Rs 51.50 crore in the same quarter last year.
ICICI Securities also expected profit to come in at Rs 503 crore, up 876 per cent, but predicted NII at Rs 2,009.50 crore, up 2 per cent YoY.
In Q2 FY24, YES Bank posted a 47 per cent growth in net profit at Rs 225 crore. Total income from operations increased by 25 per cent to Rs 7,921 crore.
Prashant Kumar, Managing Director & CEO, YES BANK said: “Over the last few quarters, we have remained focused on executing our profitability improvement roadmap by leveraging our core and key business levers of 1) retail asset mix optimization, 2) our SME and Mid-Market strong value proposition, 3) fully exploiting our Branches as the key fulcrum of our Business, and 4) leveraging our Digital and Transaction Banking capabilities and partnerships and, lastly 5) fully sweating our Branches as the fulcrum of the business to drive higher cross-sell and lower our costs going forward. This is driven alongside a focused Priority Sector Lending (PSL) strategy.
He added: “Q3 FY24 overall was a good quarter for us with deposit growth outpacing advances growth, sequential improvement in CASA ratio and Net Interest Margins. We continued to maintain a healthy Liquidity Coverage Ratio (LCR) ratio. The value of Net NPA and net carrying value of Security Receipts (SR) reduced by 30 bps point and our profits saw a ~3.5x fold increase compared to Q3 FY23.”
Earlier this month, Yes Bank announced the launch of Smart Fin, an end-to-end digital supply chain finance (SCF) platform, powered by Veefin Solutions. The SmartFin platform, through its end-to-end digital offerings, will help us drive the required operational & financial efficiencies for all stakeholders.
Ajay Rajan, country head-government, multinational & international business, transaction banking & knowledge units, Yes Bank, said: “At Yes Bank, we are constantly looking for innovative ways to support MSMEs and with the growing significance of Supply Chain Financing (SCF) as a model to drive working capital efficiencies, we felt the need to invest in a robust platform like ‘SmartFin’ to help augment our digital offerings in this space.”
Raja Debnath, Managing Director, Veefin Solutions Ltd, said, “After collaborating with banks worldwide, integrating our solution with Yes Bank has been among the most seamless experiences, a true testament to its commitment in adopting digital innovations and being fintech friendly. Veefin continues investing in its SCF product capabilities to see that our clients have the latest SCF technology in the market.”
(This news report is published from a syndicated feed. Except for the headline, the content has not been written or edited by The Daily Bharat Express-TDBE(Desk).
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