YES Bank Q3FY24 results: Net profit rises 349% to Rs 231.46 cr, NII up 2.3%

Reduced loan provisioning drives significant profit surge for lender

The private sector lender YES Bank posted 349.2 per cent year-on-year (Y-o-Y) growth in net profit to Rs 231.46 crore in the September-December quarter of financial year 2023-24 (Q3FY24) on the back of reduced loan provisioning. That was up from Rs 51.52 crore in the same period a year earlier (Q3FY23).
 

“Q3FY24 overall was a good quarter for us with deposit growth outpacing advances growth, sequential improvement in Casa (current account savings account) ratio and net interest margins (NIMs). We continued to maintain a healthy liquidity coverage ratio (LCR) ratio. The value of Net NPA (non performing assets) and net carrying value of security receipts (SR) reduced by 30 bps point and our profits saw an approximately 3.5 times increase compared to Q3FY23,” said Prashant Kumar, Managing Director & CEO, YES Bank.

Sequentially, the net profit inched by 2.8 per cent from Rs 225 crore recorded in the second quarter of FY24.

As of December 31, 2023, the advances of the lender stood at Rs 2.17 trillion, 11.8 per cent higher than Rs 1.94 trillion. Whereas, the deposits saw a growth of 13.2 per cent to Rs 2.41 trillion.
 

The asset quality of the bank remained stable with the gross non-performing assets (GNPA) ratio being flat at 2 per cent from Q2FY24. The net NPA improved to 0.9 per cent from 1 per cent sequentially.
 

NNPA and net carrying value of SR as a per cent of advances dropped to 1.7 per cent in Q3FY24 as compared to 2 per cent in Q2FY24.
 

The gross slippages for Q3FY24 dropped to Rs 1,233 crore as compared to Rs 1,610 crore in Q3FY23. The total provisions of the bank also declined by nearly 34.3 per cent to Rs 845 crore from Rs 555 crore in Q3FY23. The provisioning for exposure to Alternate Investment Fund (AIF) stood at Rs 12.5 crore.
 

The Recoveries & Upgrades of the bank for the third quarter of FY24 was Rs 1,316 crore and the management intends to recover Rs 1,500 crore in the last quarter of financial year 2023-24. So far during the April-December period of FY24, the bank has recovered Rs 3,869 crore.
 

“We are going to see the recovery and resolution of at least Rs 1,500 crores which is in line with our yearly target of more than Rs 5,000 crores. We have already achieved something around Rs 3,800 crores. We would be able to surpass our target of Rs 5,000 crores of recovery and resolution,” Prashant Kumar added during the post earnings media call.
 

The Net Interest Income (NII) of the bank improved by 2.3 per cent to Rs 2,017 crore from Rs 1,971 crore. Meanwhile, the NIM inched down to 2.4 per cent from 2.5 per cent.