Yes Bank Q2 Results: PAT Jumps 48% To Rs 225 Crore, NII At Rs 1,925 Cr

The private sector lender Yes Bank has declared the financial results of the bank for the quarter (Q2) and half year ended on September 30, 2023 today.

On a standalone basis, the company reported a net profit of Rs 225.21 Cr during Q2FY24 up by 48% YoY from Rs 152.82 Cr in Q2FY23.

The bank's net income stood at Rs 7920.68 Cr during the quarter under review compared to Rs 6348.53 Cr reported in the year-ago quarter.

To reach Rs 1,925 crore during the quarter ended on September 30, 2023, the net interest income declined by 3% YoY from Q2FY23.

The bank's net interest income (NII) for the quarter under review was Rs 1,925.1 crore, a 3.3% decrease from Rs 1,991.4 crore in Q2FY23. As of September 2023, the bank's gross non-performing assets (NPA) ratio was Rs 4,319 crore, or 1.72% of gross advances, while the net NPA ratio was 0.9%, decreasing 10 basis points from the prior quarter.

Operating profit for Yes Bank dropped 2.3% YoY to stand at Rs 772 crore. NIM reached 2.4% in Q2FY24 against 2.5% in Q1FY24 and 2.6% Q2FY23.

The bank's NIM for Q2 FY24 was 2.3%, down approximately 30 bps YoY and 20 bps QoQ. Non-interest income for Q2 FY24 was INR 1,210 Cr, rising 38.4% YoY and 6.0% YoY. Despite INR 36 Cr of PSLC expenses during the quarter compared to NIL in Q2 FY23 and INR 12 Cr in Q1 FY24, the bank reported its Q2 FY24 operating expenses at INR 2,334 Cr, up 12.5% Y-o-Y and 0.5% Q-o-Q. Operating profit for the bank in Q2 FY24 was INR 801 Cr, up 1.4% YoY. Provision costs (non-tax) for Yes Bank's Q2 FY24 were 500 Cr INR, down 14.1% YoY.

The bank said that its Net Advances, which totalled INR 2,09,106 Cr, climbed by 8.7% YoY. Advances increase was 11.2% YoY after adjusting for the ARC Transaction. In Q2FY24, its total balance sheet climbed 9.2% YoY. The CD Ratio for Yes Bank was 89.2% in Q2FY24, down from 96.1% in Q2 FY23 and 91.3% in the previous quarter. The bank said that its total deposits grew by 6.8% quarterly and 17.2% annually to INR 2,34,360 Cr during the quarter under review.

Excluding CDs, deposit growth was at 18.3% YoY, while the CASA ratio was down from 31.0% in Q2 FY23 to 29.4% in Q2 FY24. In Q2 of FY24, 3.91 lakh new CASA Accounts were opened.
The bank said that its GNPA ratio was 2.0%, down from 12.9% in Q2 FY23 and 2.0% in Q1 FY24, as well as its NNPA ratio, which was 0.9% in the quarter under review, down from 3.6% in Q2 FY23 and 1.0% in Q1 FY24. Gross Slippages in Q2 FY24 were INR 1,199 Cr compared to INR 896 Cr in Q2 FY23 and INR 1,430 Cr in Q1 FY24.

Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, "The Bank's Q2 FY24 performance is a testament to the strength of the core franchise that the Bank has built through significant strategic interventions during the 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 Yo-Y expansion in both operating profitability 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."

He further added that "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 two key senior level appointments - Head of Wholesale Banking and Head of Strategy & Transformation."