 "YES BANK House")
Private lender YES Bank’s net profit more than doubled on a year-on-year (Y-o-Y) basis to Rs 452 crore for the quarter ended March (Q4FY24) due to a sharp rise in non-interest income.
Sequentially, the Mumbai-based lender’s profit rose by 95.2 per cent from Rs 231 crore in the quarter ended December (Q3FY24), the bank said in a statement today.
Its stock had closed 0.73 per cent higher at Rs 26.15 per share on Friday on the BSE. As for annual performance, its net profit for FY24 rose 74.4 per cent to Rs 1,251 crore from Rs 717 crore for FY23.
The capital adequacy ratio stood at 15.4 per cent with Common Equity Tier-I (CET 1) at 12.2 per cent at the end of March 2024.
Its net interest income (NII) expanded by 2.3 per cent to Rs 2,153 crore in the March quarter of FY24, compared to Rs 2,105 crore in the same quarter a year ago. Sequentially, NII rose by 6.8 per cent from Rs 2,017 crore in Q3 of FY24.
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Shrinking NIM
The bank’s net interest margin (NIM) shrunk to 2.4 per cent in Q4 of FY24, compared to 2.8 per cent in Q4 of FY23. Sequentially, NIM was flat at 2.4 per cent in Q3 of FY24, according to a press statement.
In a post-result media call, bank executives said NIMs were down due to rise in the cost of funds and lower interest earned on the money kept with Rural Infrastructure Development Fund (RIDF). Lenders are required to keep money in RIDF to the extent of shortfall in meeting Priority Sector Lending (PSL) norms.
The bank expects to increase NIMs by 80-100 basis points over two-three years through reducing balances in RIDF and increasing the share of low cost – Current Account and Savings Deposits (CASA), they said.
The non- income comprising fees, commissions, treasury income etc rose by 56.3 per cent Y-o-Y to Rs 1,569 crore in Q4FY24. Sequentially, it rose by 31.3 per cent from Rs 1,195 crore in Q3FY24.
The lender’s provisions and contingencies declined by 23.8 per cent to Rs 471 crore in Q4, from Rs 618 crore in the year-ago period. Sequentially, provisions declined from Rs 555 crore in Q3FY24.
Deposits & advances
Advances grew 12.1 per cent Y-o-Y to Rs 2.27 trillion at the end of March 2024. Total deposits increased 22.5 per cent Y-o-Y to Rs 2.66 trillion. The share of low-cost deposits — current account and saving account (Casa) — stood at 30.9 per cent at the end of March 2024, from 30.8 per cent a year ago.
Its gross non-performing assets declined to 1.7 per cent in March 2024 from 2.2 per cent a year ago. Sequentially, it was down from 2.0 per cent in December 2023. Net NPAs rose to 0.6 per cent in March from 0.8 per cent in the year-ago. Sequentially, net NPAs were down from 0.9 per cent in December 2023.
While overall GNPAs declined, there was a rise in retail segment NPAs due to slippages in unsecured loans and credit cards. The retail NPA in absolute terms rose to Rs 1,708 crore in Q4FY24 from Rs 1,093 crore in Q4FY23, according to an analyst presentation. The provision coverage ratio including technical write-offs stood at 79.3 per cent in March 2024 from 72.3 per cent a year ago.
