YES Bank reported a net profit at INR 266 Cr

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YES Bank reported a net profit at INR 266 Cr.

Net Profit at INR 266 Cr – up 18.2% Q-o-Q; Operating Profit up 7.7% Q-o-Q

·      NIMs at 2.4% up 25bps Q-o-Q led by ~30bps reduction in Cost of Deposits, at 4.9%- below 5% for the first time

·      GNPA ratio further improves: 14.7% vs. 15.0% last quarter led by lower Slippages at INR 978 Cr vs. INR 1,783 Cr in Q2

·      Resolution Momentum continues with INR 610 Cr of Cash Recoveries & INR 573 Cr of upgrades during Q3FY22

·      Balance sheet above INR 3 Lac Cr for first time since Sept’19, up ~6% Q-o-Q; CD Ratio further improves to 95.6% (vs. 97.8%)

·      Granularity continues to improve– Retail: Corp. mix at 57:43 up 300bps Q-o-Q; CASA ratio at 30.4% up 100bps Q-o-Q

·      Sustained momentum in New Business Generation: Retail Disbursements at INR 9,313 Cr, SME Disbursements1 at INR 4,940 Cr, Wholesale Disbursements at INR 4,760 Cr; new CASA accounts opened in a month crossed 1 Lac mark in Dec’21

·             Expanding geographical presence: Opened 22 new branches; Increased 1,065 new YES Bankers since March 31, 2021

·      Continued Leadershipin Technology: UPI#1 in P2M transactions, ~42% vol. market share, IMPS#1 Remitter Bank2

·      Included in the MSCI ESG indices; Committed to reduce greenhouse gas emissions across the country to net zero by 2030

·      Successfully closed the sale of YES AMC during Q3FY22

Financial Highlights

·      NII for Q2FY22 at INR 1,764 Cr up 16.6% Q-o-Q. NIMs at 2.4% vs. 2.2% last quarter

·      Non-Interest income at INR 734 Cr; highest ever Retail Fee Income at INR 447 Cr

·      Operating expenses at INR 1,767 Cr up 9.6% Q-o-Q led by sustained momentum in business activity during the quarter

·      Operating Profit at INR 731 Cr up 7.7% Q-o-Q

·      Net Advances at INR 176,241 Cr up 2.0% Q-o-Q; Total Deposits at INR 184,288 Cr up 4.3% Q-o-Q; CASA continues to grow at ~2x rate of overall deposits growth

·      Average LCR during the quarter remains healthy at 123.8%; LCR as on December 31, 2021 at 130.0% 

·      CET 1 ratio at 11.6%3Total CRAR at 17.7%3

·      Asset quality parameters:

o  GNPA of 14.7% vs. 15.0% last quarter

o  NNPA of 5.3% vs. 5.5% last quarter

o  NPA Provision Coverage Ratio at 79.3% 4

1 Including Limit Set-ups3 Including Profits
2 Among Peer Banks as per NPCI data4 Including Technical Write-Offs

YES Bank’s Analyst conference call, scheduled on January 22, 2022 at 4:30 PM IST, can be heard at following link, post 10 PM:

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