Yes Bank Q4 Results: Net profit jumps 123% Y-o-Y to ₹452 crore, NIMs steady at 2.4%; asset quality improves

NIMs remains steady Q-o-Q at 2.4% for Q4FY24

The bank saw a robust growth in non-interest income across various fee streams, with a 56.3 per cent Y-o-Y and 31.3 per cent Q-o-Q increase in Q4FY24. Non-interest income for FY24 also grew by 38.8 per cent Y-o-Y.

Prashant Kumar, Managing Director and CEO, YES BANK said, “This quarter demonstrates a significant step in the RoA expansion journey, with Q4FY24 RoA expanding to 0.5 per cent. This is despite the one-off gains from tax refunds, SR recoveries and ARC Sale, being prudently utilized for strengthening the Asset Quality metrics- for instance, the NNPA + Net Carrying value of SRs have more than halved over the course of the year to 1.1 per cent from 2.4 per cent in FY23.

“Moreover, we continue to witness strong momentum in our liability franchise with growth in Deposits expanding to over 20 per cent Y-o-Y for first time in last 8 quarters. Importantly, despite thechallenging environment during the course of the year, our CASA ratio has expanded 10 bps Y-o-Y to 30.9 per cent,” he further added.

“As the Bank embarks on the fifth year of this new journey, we remain focused on diligently executing the RoA expansion roadmap,” the CEO said.

The bank’s Return on Assets (RoA) improved to 0.5 per cent in Q4FY24 from 0.2 per cent in both the preceding quarter and the same quarter of the previous year. This reflects the bank’s effective strategic initiatives to enhance asset utilization and profitability. Net Interest Income (NII) for the quarter increased by 6.8 per cent quarter-over-quarter and 2.3 per cent year-over-year to ₹2,153 crores. Additionally, non-interest income surged by 56.3 per cent year-over-year to ₹1,569 crores, fueled by diverse and granular fee streams.

On the operational front, the bank’s operating costs rose to ₹2,819 crores, a 27.0 per cent increase year-over-year, partly due to costs associated with Priority Sector Lending Certificates (PSLC). Excluding these specific costs, the operating expenses for Q4 grew at a more moderate 15.5 per cent year-over-year. The operating profit for the quarter was ₹902 crores, up 1.5 per cent year-over-year and 4.4 per cent quarter-over-quarter.

Asset quality also saw significant improvements, with the Gross Non-Performing Asset (GNPA) ratio down to 1.7 per cent, and the Net NPA (NNPA) ratio to 0.6 per cent. The bank’s provision coverage ratio was robust at 79.3 per cent, indicating strong risk management and recovery efforts.

In terms of balance sheet growth, total assets increased by 14.3 per cent year-over-year to ₹405,493 crores. The bank also reported strong growth in deposits, up 22.5 per cent year-over-year to ₹266,372 crores, and a 12.1 per cent increase in net advances to ₹227,799 crores.

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Published: 27 Apr 2024, 01:55 PM IST