YES Bank shares zoom 9% as profit jumps 123%, asset quality improves

Shares of YES Bank climbed as much as 8.98 per cent to hit an intraday high of Rs 28.50 apiece on Monday, after the private lender announced a strong set of March quarter results (Q4FY24).

YES Bank’s profit jumped over 123 per cent to Rs 452 crore in Q4FY24, as opposed to Rs 202.43 crore reported in Q4FY23.

The bank’s total income rose 25 per cent annually to Rs 9,016 crore. Its profit before tax (PBT) zoomed over 59 per cent to Rs 431.6 crore in the March quarter, from Rs 271 crore in the corresponding quarter last year.

YES Bank Net interest income (NII), which is the difference between interest earned and interest expended, stood at Rs 2,153 crore, up 2.3 per cent Y-o-Y, as against Rs 2,105 crore.

However, net interest margin (NIM) fell 2.4 per cent in Q4 FY24, from 2.8 per cent registered in Q4FY23.

YES Bank’s gross non-performing assets (NPAs) improved to Rs 3,982.56 crore as on 31 March 2024, as opposed to Rs 4,394.57 crore as on 31 March 2023.

In terms of asset quality, the gross NPA ratio reduced to 1.7 per cent in Q4FY24, from 2.2 per cent in Q4FY23. The net NPA ratio improved marginally to 0.6 per cent in Q4.

Provisions (other than tax) and contingencies dropped 23.75 per cent Y-o-Y to Rs 471 crore in Q4 FY24.

Prashant Kumar, managing director & CEO, YES Bank said, “This quarter demonstrates a significant step in the RoA expansion journey, with Q4FY24 RoA expanding to 0.5 per cent. This is despite the one-off gains from tax refunds, SR recoveries and ARC Sale, being prudently utilised for strengthening the Asset Quality metrics- for instance, the NNPA + Net Carrying value of SRs have more than halved over the course of the year to 1.1 per cent from 2.4 per cent in FY23. Moreover, we continue to witness strong momentum in our liability franchise with growth in Deposits expanding to over 20 per cent Y-o-Y for the first time in the last 8 quarters. Importantly, despite the challenging environment during the course of the year, our CASA ratio has expanded 10 bps Y-o-Y to 30.9 per cent.”

Kumar further stated that, this quarter, the bank continued to expand on its digital footprint with significant partnerships reflecting the inherent strength in the capabilities and technology infrastructure of the bank. As the bank embarks on the fifth year of this new journey, we remain focused on diligently executing the RoA expansion roadmap.