Yes Bank Q2 PAT slides 32% YoY to Rs 152 cr

The private lender reported 32.23% decline in standalone net profit to Rs 152.82 crore despite of a 17.75% increase in total income to Rs 6,394.11 crore in Q2 FY23 over Q2 FY22.

The bank's profit before tax slipped 30.9% to Rs 207.59 crore in Q2 FY23 from Rs 300.79 crore in Q2 FY22.

The private bank's operating profit before provisions & contingencies rose 16.5% year on year to Rs 790.40 crore in Q2 FY23. The bank stated that this is the highest operating profit in the last seven quarters.

Net interest income (NII) stood at Rs 1,991 crore for Q2 FY23, up 32% YoY and 8% QoQ. Net interest margin (NIM) for Q1 FY23 was at 2.6%, up nearly 40 bps YoY and 20 bps QoQ.

The bank's provisions and contingencies (excluding tax provisions) surged by 54.44% to Rs 582.81 crore in Q2 FY23. The provision coverage ratio was 84% as on 30 September 2022 as against 78.9% as on 30 September 2021. Slippages were lower at Rs 896 crore in Q2 FY23 as against Rs 1,783 crore in Q2 FY22.

The bank's gross non-performing assets (NPAs) stood at Rs 28,740.59 crore as on 30 September 2022 as against Rs 27,419.11 crore as on 30 September 2021.

The ratio of gross NPAs to gross advances stood at 12.89% as on 30 September 2022 as against 13.45% as on 30 June 2022 and 14.97% as on 30 September 2021.

The ratio of net NPAs to net advances stood at 3.60% as on 30 September 2022 as against 4.17% as on 30 June 2022 and 5.55% as on 30 September 2021.

Net advances were at Rs 192,300 crore as on 30 September 2022, up 11% YoY. Total deposits stood at Rs 200,021 crore as on 30 September 2022, up 13% YoY. CASA ratio stood at 31% as against 30.8% in Q2 FY22, up 160 bps YoY.

Commenting on the results and financial performance, Prashant Kumar, MD & CEO of Yes Bank said, "Q2 FY23 has been a significantly important quarter in this new journey of the bank. Two marquee global private equity players namely Carlyle and Advent International have reposed their faith in the franchise committing nearly Rs 8,900 crore investment into equity/ warrants of the bank. Moreover, the bank is close to completion of successful transfer of its identified pool of stressed assets to the JC Flowers ARC.

On the operational front, the business momentum continues with operating profits at nearly Rs 800 crore which is highest in the last 7 quarters, and consistently improving asset quality with NNPA now below 4% for the first time since Sep-19. As the banking Industry navigates the rising and volatile interest rate environment, wherein deposit generation along with balance sheet growth is emerging as a priority, we are geared up with a superior platform and expanded workforce to successfully execute the next growth phase of the bank."

Yes Bank is a full service commercial bank providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers.

Shares of Yes Bank closed 0.63% higher at Rs 16.05 on the BSE on Friday.

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