Earnings Outlook
YES Bank's PAT seen up over twofold on drop in provisions
This story was originally published at 19:03 IST on 23 January 2025
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By Pratiksha
NEW DELHI – YES Bank's net profit for the quarter ended December is seen increasing over twofold on year to INR 5.41 billion, mainly on the back of a sharp drop in provisions, according to the average of the estimates of four brokerage firms. The bank reported a net profit of INR 2.31 billion a year ago and INR 5.53 billion for the previous quarter.
Estimates for the net profit of the bank, which is scheduled to announce its earnings for the December quarter on Saturday, range from INR 5.00 billion to INR 5.70 billion. Nomura Equity Research expects the private sector bank's provisions to decline 43% on year to INR 3.2 billion in Oct-Dec from INR 5.55 billion in the corresponding quarter a year ago. In Jul-Sept, the lender's provisions and contingencies fell 40.6% on year to INR 2.97 billion.
Steady growth in loans is also expected to support the Mumbai-based bank's bottom line. YES Bank's loans and advances rose 12.6% on year to INR 2.45 trillion as on Dec. 31, as per provisional figures released by the bank on Jan. 3. The lender's deposits were up 14.6% on year at INR 2.77 trillion as of Dec. 31.
The bank's net interest income is seen rising 12.4% on year to INR 22.66 billion in the quarter ended December, according to the average of estimates of the four brokerages. The estimates for net interest income in the quarter range from INR 22.46 billion to INR 22.91 billion.
The bank's net interest margin is expected to remain broadly unchanged at 2.4% as of Dec. 31 compared to Sept. 30, according to Nomura Equity Research. However, Emkay Global Financial Services sees the net interest margin falling to 2.3% as of December-end. The brokerage expects the lender's slippages to be flat, albeit elevated, quarter-on-quarter. The bank's gross slippages were at INR 13.14 billion in Jul-Sept, higher than INR 12.63 billion a year ago and INR 12.04 billion a quarter ago.
On Thursday, shares of YES Bank closed 0.7% higher at INR 18.47 on the National Stock Exchange of India. Following are the Oct-Dec earnings estimates for YES Bank based on reports from four brokerage firms in descending order by the estimate of net profit:
Brokerage firm | NII (in INR million) | Net profit(in INR million) |
| JM Financial Institutional Securities Pvt Ltd. | 22,912.00 | 5,700.00 |
| Emkay Global Financial Services Ltd. | 22,685.00 | 5,594.00 |
Anand Rathi Share and Stock Brokers Ltd. | 22,456.00 | 5,355.00 |
Nomura Equity Research | 22,600.00 | 5,000.00 |
Average | 22,663.25 | 5,412.25 |
End
Edited by Avishek Dutta
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