YES BANK registers impressive profit increase in Q3 FY24

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YES BANK, a key player in the Indian banking sector, has released its financial results for the quarter ended December 31, 2023, showcasing remarkable growth and stability. The bank reported a net profit of INR 231 Cr in Q3 FY24, a striking 349.2% increase year-over-year (Y-o-Y) and a 2.8% rise quarter-over-quarter (Q-o-Q).

Financial Highlights and Profit Growth

The bank’s net interest income (NII) for Q3 FY24 stood at INR 2,017 Cr, up 2.3% Y-o-Y and 4.8% Q-o-Q. The net interest margin (NIM) for the same period was reported at 2.4%, showing an increase of 10 basis points Q-o-Q. This expansion is attributed to YES BANK’s efficient balance sheet management, despite challenges in deposits and funding costs.

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Robust Non-Interest Income and Operational Efficiency

YES BANK’s core non-interest income maintained momentum across diverse fee streams, rising by 12.1% Y-o-Y. Adjusted for realized/unrealized gains on investments, the core non-interest income saw a 23.4% increase year-over-year. The bank also continued its streak of cost efficiencies, with operating expenses witnessing less than a 1% rise Q-o-Q.

Remarkable Growth: YES BANK's Q3 Net Profit Soars, Signaling Banking Sector Resilience

Remarkable Growth: YES BANK’s Q3 Net Profit Soars, Signaling Banking Sector Resilience

Enhanced Asset Quality and Balance Sheet Growth

The quarter marked sustained balance sheet growth with a focus on granularity. There was robust deposit accretion and an improvement in the current and savings account (CASA) ratio, despite industry-wide headwinds. Advances in the SME sector and the mid-corporate segment saw acceleration, with retail advances mix reaching 47.4% compared to 44.0% in Q3 FY23.

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Asset Quality and Recovery Performance

Asset quality parameters showed stability and improvement, with a 30 basis points Q-o-Q reduction in net non-performing assets (NNPA) plus the net carrying value of security receipts to 1.7%. The bank reported strong resolution momentum, with total recoveries and upgrades for Q3 FY24 at INR 1,316 Cr.

Recognitions and Future Outlook

YES BANK’s inclusion in the BSE Next 50 and BSE 100 Indices, along with the highest S&P Global ESG Score in 2023 among Indian banks, further cements its position in the industry.

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Prashant Kumar, Managing Director & CEO of YES BANK, expressed confidence in the bank’s focused strategy, which includes retail asset mix optimization and leveraging digital and transaction banking capabilities for future growth.

YES BANK’s Q3 FY24 results reflect a significant turnaround in its financial performance, highlighting the bank’s resilience and strategic operational focus. The remarkable growth in net profit and sustained balance sheet expansion signal a strong recovery and positive outlook for the bank. This performance is a testament to YES BANK’s ability to navigate challenging market conditions and emerge as a robust player in the Indian banking sector.

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