Yes Bank Q1 Results: PAT Rises 10% YoY To Rs 343 Crore, Gross NPA dip

Yes Bank registered a growth of 10.3% in net profit to Rs 343 crore in the quarter ending June 30, 2023 (Q1FY24), as against a net profit of Rs 311 crore in the same quarter a year ago. However, net interest income (NII) and provisions showed a mixed picture. But asset quality of the bank continued to improve further.

The bank's Q1 PAT soared by 69.2% from a PAT of Rs 202 crore in March 2023 quarter.

NII, which is the difference between interest earned and expended, stood at Rs 2,000 crore in Q1FY24, rising by 8.1% YoY but declined 5% sequentially. Also, net interest margin expanded by 10 bps to 2.5% in the quarter.

Meanwhile, provisions stood at Rs 360 crore in the quarter, registering an upside of 106.2% YoY. However, provisions saw a steep decline of 41.7% QoQ.

As of June 30, 2023, gross non-performing assets (NPA) contracted to 2% in Q1FY24 versus 2.2% in Q4FY23 and 13.4% in Q1FY23. Net NPA stayed lower from 4.2% in Q1FY23 to 1% in Q1FY24, however, it gradually increased from 0.8% in Q4FY23.

Meanwhile, gross Slippages for Q1FY24 came in at Rs 1,430 crore as compared to Rs 1,072 crore in Q1FY23 and Rs 1,196 crore in Q4FY23.

On the financial performance, Prashant Kumar, Managing Director & CEO, of YES BANK said, "Q1FY24 was a steady quarter where we have demonstrated significant progress in line with our Strategic Objectives. While the Balance Sheet granularity momentum continued, we also delivered a strong growth in our Fee Income while containing our Operating and Credit Costs. With the focus of the Bank now firmly aligned towards improving the profitability of the franchise, over the coming quarters, we will continue to work on levers which further accelerate this momentum such as improvement in NIMs and CASA Ratio, reducing the drag from legacy PSL requirements, further cross-sell and product penetration into our fast-expanding customer base, while continuing to maintain strict controls over costs."

Further, net advances at Rs 2,00,204 crore, registered growth of 7.4% YoY. There was sustained improvement in Granularity - Retail & SME: Mid Corp: Corp mix at 61:14:25 versus 51:11:38 last year and 59:14:27 last quarter. Also, in the quarter, new sanctions stood at Rs 24,730 crore, gross retail disbursements were at Rs 11,283 crore, rural disbursements at Rs 717 crore, SME disbursements at Rs 6,686 crore, and Mid Corporate disbursements stood at Rs 1,310 crore.

Also, total deposits came in at Rs 219,369 crore, up 13.5% YoY and 0.9% QoQ. Excluding CDs, the deposits grew at 16.2% YoY. CASA ratio at 29.4% versus 30.8% in Q1FY23 and Q4FY23. Moreover, Retail and Small Business Deposits (Gross LCR Definition) grew 17.9% YoY.

In the quarter, the bank opened 355K new CASA Accounts. It also added 20 new branches during Q1FY24 -- taking the total to 1,212 branches by the end of Q1FY24.