YES Bank Q3 Results: Net Profit at ₹ 231 Crore

YES Bank Q3 Results Key Highlights:

1. Net Profit Growth:

 Net profit for Q3 FY24 stands at INR 231 Cr, marking a substantial 349.2% year-on-year growth and a 2.8% quarter-on-quarter increase.

2. NIM Expansion:

Net Interest Margins (NIMs) expanded quarter-on-quarter, attributed to efficient balance sheet management, despite challenges in deposits and funding costs.

3. Core Non-Interest Income:

Momentum in core non-interest income remains strong, sustained by diverse and granular fee streams.

4. Cost Efficiency:

Operating expenses increased by less than 1% quarter-on-quarter for the second consecutive quarter, reflecting continued cost efficiencies.

5. Provision Costs:

Provision costs stood at 0.6% of assets, remaining relatively stable quarter-on-quarter, despite aging-related provisions on security receipts.

6. Balance Sheet Growth:

The balance sheet maintains growth momentum with ongoing enhancements in granularity.

7. Deposit Accretion and CASA Ratio:

Robust deposit accretion and a quarter-on-quarter improvement in Current Account Savings Account (CASA) Ratio were achieved, despite industry-wide challenges.

8. SME Advances and Mid Corporate Segment:

Accelerated growth observed in SME advances, alongside sustained momentum in the mid-corporate segment.

9. Retail Advances Mix Calibration:

Focus on mix calibration within the retail advances segment to optimise performance.

10. Asset Quality Stability:

Asset quality parameters exhibit stability and sustained improvement:

• Quarter-on-quarter reduction of 30 basis points in (NNPA + net carrying value of SR)% to 1.7%.
• Slippages, Gross Non-Performing Assets (GNPA), Net Non-Performing Assets (NNPA), and Provision Coverage Ratio remained relatively stable quarter-on-quarter.
• Strong resolution momentum with total recoveries and upgrades for Q3 FY24 at INR 1,316 Cr. Year-to-date FY24 cumulative recoveries and upgrades amount to INR 3,869 Cr.

11. Stock Inclusions:

The stock is included in both BSE Next 50 and BSE 100 indices.

12. ESG Score:

Recognized as the top Indian bank with the highest S&P Global ESG Score in 2023.

Additional Read: Q3 Results Dashboard

Financial Highlights:

Profit and Loss:

Net Interest Income (NII):

• Q3 FY24 NII amounts to INR 2,017 Cr, showing a 2.3% year-on-year increase and a 4.8% quarter-on-quarter rise.

Net Interest Margin (NIM):

NIM for Q3 FY24 stands at 2.4%, indicating a 10 basis points quarter-on-quarter increase.

Non-Interest Income:

Q3 FY24 Non-Interest Income totals INR 1,195 Cr, marking a 12.1% year-on-year growth. Adjusted for Realised/Unrealised Gain on Investments, Core Non-Interest Income increases by 23.4% year-on-year.

Operating Expenses:

Q3 FY24 Operating Expenses reach INR 2,347 Cr, up by 10.6% year-on-year and only 0.6% quarter-on-quarter. Adjusted for Priority Sector Lending Certificate (PSLC) costs, Operating Expenses increase by 7.2% year-on-year and decrease by 0.8% quarter-on-quarter.

Operating Profit:

Operating profit for Q3 FY24 amounts to INR 864 Cr, down by 5.4% year-on-year but up by 7.8% quarter-on-quarter.

Provision Costs:

Q3 FY24 Provision costs (non-tax) are at INR 555 Cr, reflecting a 34.3% year-on-year decrease.

Net Profit:

Q3 FY24 Net Profit reaches INR 231 Cr, marking a significant 349.2% year-on-year increase.

Balance Sheet:

Net Advances:

Net Advances stand at INR 2,17,523 Cr, showing a growth of 11.8% year-on-year.

Granularity Improvement:

There’s sustained improvement in granularity with the Retail & SME: Mid Corp.: Corp. mix at 63:14:23 compared to 58:13:29 last year and 63:14:23 last quarter.

Retail Advances Mix:

Retail Advances mix is at 47.4% versus 44.0% in Q3 FY23 and 48.0% last quarter.

Disbursements:

New Sanctions / Disbursements amount to INR 28,498 Cr in Q3 FY24, with detailed breakdowns for various sectors.

Total Balance Sheet Growth:

Total Balance Sheet grew by 10.7% year-on-year.

CD Ratio:

CD Ratio is at 89.9% versus 89.7% in Q3 FY23 and 89.2% last quarter.

Total Deposits:

Total Deposits amount to INR 2,41,831 Cr, up by 13.2% year-on-year and 3.2% quarter-on-quarter.

CASA Ratio:

CASA ratio stands at 29.7% versus 29.9% in Q3 FY23 and 29.4% quarter-on-quarter.

New CASA Accounts:

3.98 lakh new CASA Accounts were opened in Q3 FY24.

Retail and Small Business Deposits:

Retail and Small Business Deposits (Gross LCR Definition) grew by 16.8% year-on-year.

Liquidity Coverage Ratio (LCR):

Average Quarterly LCR during the quarter remains healthy at 118.4%, with LCR as on December 31, 2023, at 117.8%.

Capital Adequacy Ratios:

•  CET 1 ratio is at 12.6% and Total CRAR at 16.3%.
• RWA to Total Assets is at 71.1%.

Investments:

Investments amount to INR 79,333 Cr, up by 16.0% year-on-year.

Borrowings:

Borrowings reach INR 79,381 Cr, showing a 15.2% year-on-year increase.

Asset Quality:

• (NNPA + net carrying value of SR) as % of Advances: The percentage stands at 1.7% in Q3 FY24, compared to 2.0% in Q2 FY24.
• Gross Non-Performing Asset (GNPA) Ratio: GNPA ratio remains flat at 2.0% in both Q3 FY23 and Q2 FY24.

Net Non-Performing Asset (NNPA) Ratio:

NNPA ratio is at 0.9% versus 1.0% in Q3 FY23 and remains steady at 0.9% in Q2 FY24.

Gross Slippages:

Gross slippages for Q3 FY24 amount to INR 1,233 Cr, compared to INR 1,610 Cr in Q3 FY23 and INR 1,199 Cr in Q2 FY24.

Slippages Net of Recoveries and Upgrades:

Slippages, net of recoveries and upgrades, stand at INR 574 Cr versus INR 543 Cr in the last quarter.

Overdue Book (31-90 days) Quarter-on-Quarter:

Overdue book (31-90 days) shows:

• INR 4,378 Cr compared to INR 3,898 Cr last quarter.
• 31-60 days book at INR 2,327 Cr versus INR 1,477 Cr last quarter.
• 61-90 days book at INR 2,051 Cr versus INR 2,421 Cr last quarter.

Resolution Momentum:

The resolution momentum remains strong with recoveries and upgrades for Q3 FY24 at INR 1,316 Cr. Year-to-date FY24 cumulative recoveries and upgrades amount to INR 3,869 Cr.

Digital & Other Highlights/Achievements:

ICCW Services:

One of the four banks live as both Acquirer and Issuer for ICCW Services, facilitating cash withdrawal from ATMs through UPI without using a card.

S&P Global ESG Score:

YES BANK tops Indian Banks with the highest S&P Global ESG Score in 2023.

Senior Management Appointments:

Mr. Tushar Patankar appointed as Chief Risk Officer and Mr. Rajat Chhalani appointed as Chief Compliance Officer during the quarter.

Inclusions in Indices:

Included in both BSE Next 50 and BSE 100 Indices.

Additional Check: YES Bank Share Price

Financial Highlights from Q3FY24 Results

Profit & Loss Statement Highlights
(INR Cr)	Q3FY24	Q2FY24	Growth %	Q3FY23	Growth %
Net Interest Income	2,017	1,925	4.8%	1,971	2.3%
Non-Interest Income	1,195	1,210	-1.3%	1,066	12.1%
Total Net Income	3,211	3,135	2.4%	3,036	5.8%
Operating Profit/(Loss)	864	801	7.8%	914	-5.4%
Provisions	555	500	10.9%	845	-34.3%
Net Profit / (Loss)	231	225	2.8%	52	349.2%
Basic EPS (INR)	0.08	0.08	2.8%	0.02	303.3%

About YES Bank

YES BANK is a comprehensive commercial bank offering a wide array of products, services, and digital solutions driven by technology. It serves retail, MSME, and corporate clients. The bank also operates its investment banking, merchant banking, and brokerage businesses through YES SECURITIES, a wholly owned subsidiary. Headquartered in Mumbai, YES BANK has a nationwide presence, including an International Banking Unit (IBU) at GIFT City, and a Representative Office in Abu Dhabi.

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Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/78bb4886-0320-4708-9455-3d3b6a415317.pdf