Analyst Concall
YES Bank sees growth in retail assets starting FY26
This story was originally published at 18:20 IST on 25 January 2025
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By Pratiksha
NEW DELHI – YES Bank expects growth in its retail assets from the start of the financial year 2025-26 (Mar-Apr), the private-sector bank's senior management said in a post-earnings analyst call on Saturday. "(We) recalibrated our strategy on the retail side, which gives better yield and NIM (net interest margin). We are expecting, going forward, especially at the start of FY26, we will see growth on the retail assets, which is going to help us have better yield in the NIM expansion," the management said. The lender's net interest margin remained stable, both year-on-year and quarter-on-quarter, at 2.4% in Oct-Dec.
The Mumbai-based bank expects its provision coverage to remain around the same level going ahead. 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.
The lender's non-performing asset provision coverage ratio was 71.2% as of Dec. 31 against 56.6% at the end of December 2023. The management said it is comfortable with the NPA provision coverage ratio staying around 70%.
The management does not see a need to raise equity and is of the view that the current level is adequate to take care of the bank's growth requirements. The bank's common equity tier 1 ratio was 13.3% as of Dec. 31 against 12.6% at the end of December 2023.
"From a capital standpoint, we feel 13.3% is reasonable. Of course, at some stage we will have to look at capital, but we do believe we have enough capital in play to grow from here on as well," the lender said.
YES Bank's net profit for the December quarter rose 164.5% on year to INR 6.12 billion on the back of a sharp drop in provisions, the lender's quarterly earnings released Saturday showed. End
Edited by Ashish Shirke
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