YES Bank has reported that its net profit in the June quarter was up 50 per cent at ₹311 crore. Incidentally, this is the first quarterly results of the bank after exiting the Reserve Bank of India’s reconstruction on July 15.

The rise in net profit was aided by a 62 per cent fall in provisions to ₹175 crore and healthy loan growth. YES Bank saw advances rising by 14 per cent, while disbursements increased 87 per cent higher at ₹22,636 crore.

In the post earnings conference, Kumar said that the bank is confident of meeting its FY23 guidance of at least 15 per cent credit growth, wherein retail and MSME loans are expected to grow by 25 per cent and large corporate loans by 10 per cent.

Net interest income of the bank rose 32 per cent to ₹1,850 crore, supported by a 30 bps improvement in the net interest margin to 2.4 per cent.

Deposits of the bank were up 18 per cent at ₹1.9 lakh crore, with the share of low-cost CASA (current and saving account) deposits at 30.8 per cent as of June-end. The bank said it opened 3 lakh CASA accounts in the quarter under review and expects customer acquisition momentum to sustain, aided by the recently launched floating rate FD where it has already acquired over 14,000 customers.

Asset Quality

YES Bank said that the fall in provisions for the quarter was largely on account of lower slippages of ₹1,072 crore, 52 per cent lower year-on-year. Slippages for the quarter included ₹619 crore from corporate loans and ₹368 crore from retail loans.

The lender saw loan recoveries and upgrades of ₹1,532 crore, which Kumar said was in line with bank’s guidance of total recoveries of ₹5,000 crore in this fiscal.

This will be in addition to the block of stressed assets worth ₹48,000 crore, that the bank has put up on sale to asset reconstruction companies. JC Flowers Asset Reconstruction has put in a bid of ₹11,183 crore, which the bank has accepted as the base bid for the recently started Swiss Challenge process.

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