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Yes Bank Q4 Results: Profit Rises 38% Sequentially As Provisions Drop – BloombergQuint

Yes Bank Ltd. has reported its first full-year profit since 2018-19, CEO Prashant Kumar said after declaring the private lender’s March quarter results.

Net profit of the Mumbai-based lender rose 38% over the previous quarter to Rs 367 crore. In the year-ago period, it had reported a net loss of Rs 3,788 crore. Analysts tracked by Bloomberg had estimated a net loss of Rs 254 crore in the three months ended March 31.

Yes Bank Q4 Results: Key Highlights

  • Net interest income, or core income, rose 3.1% to Rs 1,819 crore — up 3.1% quarter-on-quarter and 84% year-on-year.

  • Other income rose 20.2% sequentially to Rs 882 crore.

  • Gross NPA ratio stood at 13.93% as of March 31, down 72 basis points sequentially. Net NPA ratio fell 76 basis points to 4.53%.

  • Provisions for the quarter fell 28% sequentially to Rs 271 crore.

The bank is in the process of setting up an asset reconstruction company with an external partner. That is expected to close before June 30.

Yes Bank’s “capital base is enough to aid growth aspirations in FY23,” Kumar said during a post-earnings call on Saturday. Having said that, the bank will look at raising equity capital this year.

“In the current uncertain times, (it’s) always important to have a buffer available. If there is an opportunity available to add this buffer, we will look at it,” he said. “We believe, considering the uncertainty and global scenario, this year is the right time to look at adding this buffer.”

The Economic Times had previously reported that Yes Bank is in talks with private equity investors to raise further capital.

Business Growth

Outstanding advances as on March 31 stood at Rs 1.81 lakh crore, up 8% year-on-year. Retail and small business loans accounted for 60% of the bank’s loan portfolio.

Low-cost current account and savings account, or CASA, deposits made up 31.1% of Yes Bank’s Rs 1.97-lakh crore total deposits as on March 31.

Yes Bank aims to report more than 15% credit growth in FY23, Kumar said. Wholesale loan book is expected to grow by 10%, he said.