Private sector lender Yes Bank posted its Q1 FY23 results on July 23, 2022. The bank reported a 50% YoY (Year on Year) jump in its net profit which came in at Rs 311 crore for the quarter under review from Rs 207 crore in the year ago period. However, the net profit was down sequentially by 15.5% QoQ (Quarter on Quarter) to Rs 311 crore from Rs 367 crore in the previous quarter.
However, the bank’s operating profit took a hit of 23.8% QoQ and 19.5% YoY and came in at Rs 590 crore for Q1 FY23 from Rs 774 crore and Rs 773 crore in Q4 FY22 and Q1 FY22 respectively. The Net Interest Income (NII) on the other hand was up 32% YoY at Rs 1,850 crore from Rs 1,402 crore in the year ago period. On a sequential level, the NII was up a mere 1.7%.
The total deposits in Yes Bank grew by 18.3% YoY to Rs 1.93 lakh crore from Rs 1.63 lakh crore in the corresponding quarter in the year ago period. However, the total deposits were down by 2% QoQ. This trickled down to the bank’s total assets which were up nearly 17% YoY to Rs 3.18 lakh crore from Rs 2.72 lakh crore in the year ago period, but was largely flat on a QoQ basis. Yes Bank’s CASA ratio too improved by 3.4% and came in at 30.8% from 27.4% in the year ago period. However, this was a dip from a CASA ratio of 31.1% reported in the previous quarter.
Yes Bank has also brought its NPA (Non-Performing Assets) down. Its Gross NPA came in at 13.4% in Q1 FY23 from 13.9% in Q4 FY22 and 15.6% in Q1 FY22. Meanwhile, the Net NPA was down to 4.2% in Q1 FY23 from 4.5% in Q4 FY22 and 5.8% in Q1 FY22.
Commenting on the results and financial performance, Prashant Kumar, MD & CEO, Yes Bank said, “Q1FY23 has been a stable quarter with progress across fresh disbursements momentum, improving granularization of assets, steady profitability and consistently improving Asset Quality metrics. The Balance Sheet is now resilient to navigate the volatile Interest Rate environment, and the Bank remains on track to achieve the FY23 as well as medium term guidance and objectives. More importantly, during the quarter, the Bank has successfully come out of the Reconstruction Scheme with formation of the alternate Board. In addition, term sheet has been signed for sale of identified pool of stressed assets to the ARC. Successful sale of stressed Assets will be the largest such deal in India and a significant milestone in the Bank’s new journey.”
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Research Analyst: Bavadharini KS