YES Bank Q1 Results: Profit rises 10% YoY to Rs 343 crore; NII up 8%

economictimes.indiatimes.com:

YES Bank on Saturday reported a 10.26% year-on-year (YoY) rise in its standalone June quarter profit at Rs 342.52 crore. The private lender's bottomline was higher than analyst expectations. Its net interest income was up 8.1% from a year ago and stood at Rs 1,999.6 crore.

The bank's gross non-performing asset (GNPA) ratio fell 20 basis points sequentially to 2% but net NPA increased by 20 bps on-quarter to 1%. Provisions for the quarter more than doubled YoY to Rs 360 crore. During the quarter, net interest margin or NIM saw a growth of 10 bps YoY to 2.5%.

Net advances registered a 7.4% YoY growth at Rs 2,00,204 crore while the total deposits rose 13.5% YoY to Rs 219,369 crore. Describing Q1 as a strategic quarter, YES Bank MD and CEO Prashant Kumar said while the balance sheet granularity momentum continued, it delivered a strong growth in fee income while containing operating and credit costs. «With the focus of the bank now firmly aligned towards improving the profitability of the franchise, over the coming quarters, we will continue to work on levers which further accelerate this momentum such as improvement in NIMs and CASA Ratio, reducing the drag from legacy PSL requirements, further cross-sell and product penetration into our fast-expanding customer base, while continuing to maintain strict controls over costs,» Kumar said.

Loan book granularity improved as retail advances mix came in at 47.2% vs 38.6% in Q1 FY23 and 45.5% last quarter (exReverse Repo Adj.). The rest of the loan book now comprises 14% SME, another 14% to medium corporates and 25% to corporates. The total balance sheet grew 11.7% YoY while the CASA ratio came at 29.4% vs 30.8% in Q1FY23 and Q4FY23.