Yes Bank reported a 47 per cent increase in first quarter net profit at ₹502 crore against ₹343 crore in the year ago quarter. The bottomline was supported by healthy growth in net interest income (NII) and sharp decline in non-tax provisions.
The private sector lender’s NII (difference between interest income and interest expenses) was up about 12 per cent at ₹2,244 crore (₹2,000 crore in the year ago period).
Non-interest income, comprising fees and commission, earnings from foreign exchange transactions, profit/loss from sale of securities, fair valuation of investments, interest on income tax refund and miscellaneous income, nudged up 5 per cent to ₹1,199 crore (₹1,141 crore).
Non-tax provisions declined 41 per cent to ₹212 crore (₹360 crore). The Bank received a write-back of ₹318 crore on provision for investments even as provision for NPAs jumped 63 per cent to ₹513 crore.
Net interest margin declined a shade to 2.4 per cent against 2.5 per cent in the year ago period.
GNPAs position improved to 1.7 per cent of gross advances as at June-end 2024 against 2 per cent as at June-end 2023. Net NPAs position improved a tad to 0.5 per cent of net advances against 0.6 per cent of net advances.
Gross slippages in the reporting quarter was at ₹1,205 crore v/s ₹1,482 crore in the year ago quarter.
Slippages net of recoveries and upgrades in Q1FY25 was at ₹499 crore v/s ₹808 crore in Q1FY24.
Total advances increased by 14.7 per cent yoy to ₹2,29,565 crore as at June-end 2024. Fresh disbursements during the quarter stood at ₹20,910 crore, with retail assets accounting for 36 per cent of the total; SME (34 per cent); corporate (18 per cent); mid-corporate (7 per cent); and rural assets (5 per cent).
Retail & SME: Mid Corprate.: Corporate loans mix stood at 60:15:25 vs. 61:14:25 in the year ago period.
Total deposits rose by 20.8 per cent yoy to stand at ₹2,65,072 crore as at June-end 2024. Low-cost CASA (current account, savings account) deposits improved to 30.8 per cent of total deposits vs. 29.4 per cent in the year ago quarter.
Prashant Kumar, Managing Director & CEO, said, “...While the Income Engines are continuing to fire with normalised net income growth at 15 per cent Y-o-Y, the Bank has been able to contain the operating cost growth at 8 per cent Y-o-Y (ex-Priority Sector Lending Certificates).
“At the same time, the resolution momentum continues to be strong, leading to lower net credit costs, which is also aiding in Return on Asset expansion.”