YES BANK Q2 RESULTS 2024: PROFIT RISES, NPA DOWN

Yes Bank reported its Q2FY24 numbers on Saturday afternoon. On Friday, Yes Bank's share price closed at Rs 17.35 per share, up 1.76%. Let us look at Yes Bank's results in detail.

About Yes Bank

Yes Bank is a prominent private sector bank founded in 2004 and has since grown to offer a wide range of banking and financial services to customers. Yes Bank faced a significant crisis in 2020 but has since undergone restructuring and is working to regain its stability and credibility in the banking sector.

Crucial parameters

• PE: 66.32
• 52-week high: Rs 24.75
• Market Cap: Rs 49,693.85 crore
• ROE: 1.84

Share price movement

In the last one month, the bank's share price has fallen by nearly 2%. In 2023, the share price has fallen by 20%, against 8% NIFTY50 returns. For the 5-year time frame, the share price has lost most of its value - down 90%.

How were Yes Bank's September quarter results?

Yes Bank Q2FY24 results details are as below:

Net Profit: The bank reported a net profit of Rs 225 crore, a growth of 47% year on year. The profits have increased from Rs 153 crore in the year-ago period. Sequentially, net profit has fallen by 34%.

Net Interest Income (NII): Net Interest Income (NII) is used to measure the profitability of a bank's core lending and borrowing activities. It represents the difference between the interest earned from a bank's interest-earning assets, such as loans, advances, and investments, and the interest paid on its interest-bearing liabilities, like deposits and borrowings.

Yes Bank reported an NII of Rs 1,925 crore for the second quarter of the current financial year. The NII was down by 3% from Rs 1,984 crore reported for the same period of the last financial year. The Net Interest Margins (NIM) was down to 2.3% in Q2FY23 from 2.6% in Q2FY23. Sequentially, NIM has fallen by 20 basis points.

Asset Quality: Yes Bank's Gross Net Performing Assets (GNPA) for the quarter ended September was 2%. It has decreased sharply from the 12.9% reported in the year-ago period and was flat from Q1FY24's GNPA. Net NPA lowered from 0.9% from a year ago period to 3.6%. Sequentially, the NNPA increased reduced by 10 basis points.

The Provision Coverage Ratio (PCR) at 56.4% v/s. 48.4% last quarter. By the end of FY24, the management expects the gross NPA ratio to remain unchanged and the net NPA ratio to fall to 0.75%.

Advances and Deposits: The Deposits reported by the bank for the quarter ending September grew by 17.2% YoY and 6.8% sequentially. Deposit stood at 2.34 lakh crore, up from Rs 2 lakh crore in the year-ago period.

Advances increased 8.7% YoY from Rs 1.92 lakh crore in Q2FY23 to Rs 2.09 lakh crore in Q2FY24. Retail Advances crossed Rs 1 lakh crore and was up 27.2% YoY. SME Advances crossed Rs 30,000 in the September quarter. Mid Corporate Segment Advances were up 26.7% YoY.

CASA ratio stood at 29.4%, down from 31% in the year-ago period. A total of 3.91 lakh CASA Accounts were opened in the September quarter.

Management Commentary: “The Bank’s Q2 FY24 performance is a testament to the strength of the core franchise that the bank has built through significant strategic interventions during the last three years. Amidst a challenging environment with respect to interest rates, deposit growth slowdown, as well as tightening liquidity, the bank has managed to deliver Yo-Y expansion in both operating profitability and net profitability. At the same time, the fortification of Balance Sheet from Asset Quality standpoint continues, supported by robust redemptions from the Security Receipts." Prashant Kumar, Managing Director & CEO.