YES Bank Q1FY24 results: Surge in net profit and non-interest income
YES Bank (NSE: YESBANK) has released its financial results for the quarter ended June 30, 2023, reporting an increase in several key metrics year-on-year. The bank’s net interest income (NII) rose to INR 2,000 crores, up 8.1% year-over-year, while non-interest income climbed 54.0% to INR 1,141 crores. Operating expenses were listed at INR 2,322 crores, a 16.0% increase from the same period last year, and net profit climbed 10.3% to INR 343 crores.
The bank also observed a 7.4% increase in net advances, with growth adjusting to 10.0% year-on-year after accounting for the ARC Transaction. The balance sheet also reported an 11.7% growth. Total deposits were marked at INR 219,369 Crs, a 13.5% increase year-over-year. Excluding CDs, deposit growth was reported at 16.2%.
During the quarter, YES Bank also added 20 new branches, bringing the total to 1,212, up from 1,140 in Q1FY23. The bank was also the first in India to undertake the INR settlement for bullion imports from UAE, following the signing of MoUs between RBI and the Central Bank of the UAE to promote the use of local currencies for cross-border transactions.
Other significant developments during the quarter include the launch of a cluster banking initiative in Ujjain, Madhya Pradesh, aimed at providing easy access to finance across rural areas through digitization, and the launch of YES PAY EASY – a mobile app for merchants, in partnership with Mastercard and Worldline India.
Prashant Kumar, Managing Director & CEO, YES Bank said, “Q1FY24 was a steady quarter where we have demonstrated significant progress in line with our Strategic Objectives. While the Balance Sheet granularity momentum continued, we also delivered a strong growth in our Fee Income while containing our Operating and Credit Costs.
“With the focus of the Bank now firmly aligned towards improving the profitability of the franchise, over the coming quarters, we will continue to work on levers which further accelerate this momentum such as improvement in NIMs and CASA Ratio, reducing the drag from legacy PSL requirements, further cross-sell and product penetration into our fast-expanding customer base, while continuing to maintain strict controls over costs.”