Earnings Review
YES Bank's PAT for Oct-Dec jumps nearly threefold as provisions fall
This story was originally published at 14:39 IST on 25 January 2025
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--YES Bank: Retail book gross NPAs at 2.2% as on Dec 31 vs 2.0% qtr ago
--YES Bank Oct-Dec gross slippages INR 13.48 bln vs INR 12.33 bln year ago
--YES Bank: Retail book Oct-Dec fresh slippages at INR 11.74 bln
--YES Bank Oct-Dec avg LCR 133.2% vs 132.0% in Jul-Sept
--YES Bank: CASA ratio at 33.1% as on Dec 31 vs 32.0% as on Sept 30
--YES Bank total deposits INR 2.77 tln as on Dec 31, up 14.6% on year
--YES Bank net advances INR 2.45 tln as on Dec 31, up 12.6% on year
--YES Bank Provision Coverage Ratio, including write offs 82.4% as on Dec 31
--YES Bank Oct-Dec net interest margin 2.4%, flat on quarter
--YES Bank Oct-Dec net interest income INR 22.24 bln, up 10.2% YoY
--YES Bank Basel III capital adequacy ratio 15.2% as on Dec 31
--YES Bank net NPA ratio 0.5% as on Dec 31 vs unch qtr ago
--YES Bank gross NPA ratio 1.6% as on Dec 31 vs unch qtr ago
--YES Bank Apr-Dec total income INR 273.96 bln vs INR 236.84 bln year ago
--YES Bank Apr-Dec net profit INR 16.68 bln vs INR 7.99 bln year ago
--YES Bank Oct-Dec provisions INR 2.59 bln vs INR 5.55 bln year ago
--YES Bank Oct-Dec total income INR 93.41 bln vs INR 81.79 bln year ago
--YES Bank Oct-Dec net profit INR 6.12 bln vs INR 2.31 bln yr ago
--Analysts estimated YES Bank Oct-Dec net profit at INR 5.41 bln
--YES Bank Oct-Dec net profit INR 6.12 bln
By Pratiksha
NEW DELHI – YES Bank's net profit for the quarter ended December jumped up nearly threefold as the lender recorded its biggest year-on-year drop in provisions in 10 quarters. The private sector bank's net profit for the quarter rose 164.5% on year to INR 6.12 billion, the lender's quarterly earnings released on Saturday showed.
YES Bank's net profit was seen rising 133.8% on year to INR 5.41 billion, according to the average of estimates of four brokerage firms. The Mumbai-based bank's provisions and contingencies for the quarter declined 53.4% on year to INR 2.59 billion. Sequentially, the provisions fell 12.9%.
The bank's net interest income--the difference between interest earned and expended--for the quarter rose 10.2% on year to INR 22.24 billion. Analysts had expected the net interest income to rise 12.4% on year to INR 22.66 billion. The lender's total income for Oct-Dec was INR 93.41 billion, up 14.2% on year.
Though the bank's asset quality ratios remained flat sequentially, they improved on a year-on-year basis, supporting the bottom line. The bank's gross non-performing asset ratio declined to 1.6% as on Dec. 31 from 2.0% at the end of December 2023. The net NPA ratio fell to 0.5% from 0.9% a year ago. The gross NPA ratio of the lender's retail book was 2.2% as on Dec 31 as against 2.0% at the end of Sept. 30.
The bank's provision coverage ratio, including write-offs, rose to 82.4% as of Dec. 31 from 81.5% as of Sept. 30 and 71.9% at the end of December 2023. Gross slippages in Oct-Dec were at INR 13.48 billion, higher than INR 12.33 billion a year ago and INR 13.14 billion a quarter ago. Fresh slippages in the retail segment remained flat at INR 11.74 billion on a sequential basis.
As is the trend with YES Bank, deposits continued to outpace advances. Total deposits were INR 2.77 trillion as on Dec. 31, up 14.6% on year. Out of this, term deposits grew 9.1% on year to INR 1.86 trillion as on Dec. 31.
The bank's current account, savings account ratio rose to 33.1% from 29.7% a year ago. The bank's credit-deposit ratio fell to 88.3% in Oct-Dec from 89.9% a year ago but was up from 84.8% a quarter ago.
The private bank's net advances rose 12.6% on year to INR 2.45 trillion as on Dec. 31. Within loans, corporate loans rose at the fastest pace, posting a year-on-year increase of 26.8% to INR 634.35 billion. Mid-corporate advances grew 26.7% on year to INR 396.02 billion, while small and medium enterprise loans were up 26.7% at INR 419.91 billion. However, retail loans fell 3.2% on year to INR 998.05 billion as on Dec. 31.
The bank's Basel-III capital adequacy ratio was 15.2% as on Dec. 31. The average Liquidity Coverage Ratio in Oct-Dec was around 133.2%, up from 132.0% in Jul-Sept. The lender's net interest margin remained stable, both year-on-year and quarter-on-quarter, at 2.4% in Oct-Dec.
The lender's net profit for Apr-Dec rose to INR 16.68 billion from INR 7.99 billion a year ago, while total revenue increased to INR 273.96 billion from INR 236.84 billion a year ago, registering a growth of 15.7%. On Friday, shares of the bank closed 1.3% lower at INR 18.24 on the National Stock Exchange. End
Edited by Ashish Shirke
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