Editorial Team
Key Highlights
§   Profits at INR 311 Crs in Q1FY23 grew 50% Y-o-Y

•       NII at INR 1,850 Crs grew 32% Y-o-Y; NIMs at 2.4% up nearly 30 bps Y-o-Y

•       Operating Profit at INR 590 Crs in Q1FY23; Excluding realized / unrealized gain on Investments, Operating Profit grew 33% Y-o-Y

•       Total Provision Costs for Q1FY23 at INR 175 Crs declined 62% Y-o-Y, primarily aided by lower slippages

§   Sustained growth in Deposits and Granular Advances

•       Advances up 14% Y-o-Y, Deposits up 18% Y-o-Y; Balance Sheet grew 17% Y-o-Y

•       New Disbursements1 of INR 22,636 Crs in Q1FY23, up 87% Y-o-Y and 14% Q-o-Q

•       Retail & MSME: Corporate Mix improved by 240bps Q-o-Q to 62:38

•       CASA ratio at 30.8% vs 27.4% in Q1FY22, up nearly 340 bps Y-o-Y

•       3.0 Lacs CASA A/Cs opened in Q1FY23- sustained momentum in customer acquisition

§   Improving Asset Quality

•       GNPA ratio at 13.4% vs. 15.6% in Q1FY22 and 13.9% in Q4FY22

•       NNPA ratio at 4.2% vs. 5.8% in Q1FY22 and 4.5% in Q4FY22

•       Slippages lower at INR 1,072 Crs in Q1FY23 vs. INR 2,233 Crs in Q1FY22

•       Resolution Momentum continues with Total Recoveries & Upgrades for Q1FY23 at INR 1,532 Crs– in line with the Annual guidance of INR 5,000 Crs

§   Capital Position – Organic Accretion

•       CET 12 at 11.9% vs. 11.6% both in Q1FY22 and Q4FY22

•       CRAR2 at 17.7% vs. 17.9% in Q1FY22 and 17.4% in Q4FY22

•       RWA to Total Assets at 73% vs. 82% in Q1FY22 and 73% in Q4FY22

1 Includes Limit Setups for SME Segment, 2 Includes Profits

 Commenting on the results and financial performance, Prashant Kumar, MD & CEO, YES BANK said, “Q1FY23 has been a stable quarter with progress across fresh disbursements momentum, improving granularization of assets, steady profitability and consistently improving Asset Quality metrics. The Balance Sheet is now resilient to navigate the volatile Interest Rate environment, and the Bank remains on track to achieve the FY23 as well as medium term guidance and objectives. More importantly, during the quarter, the Bank has successfully come out of the Reconstruction Scheme with formation of the alternate Board. In addition, term sheet has been signed for sale of identified pool of stressed assets to the ARC. Successful sale of stressed Assets will be the largest such deal in India and a significant milestone in the Bank’s new journey. 

Financial Highlights
Profit and Loss
 §  NII at INR 1,850 Crs for Q1FY23 grew 32% Y-o-Y and 2% Q-o-Q

§  NIM for Q1FY23 at 2.4% up nearly 30 bps Y-o-Y

§  Non-Interest Income for Q1FY23 at INR 781 Crs. Non-Interest Income adjusted for unrealised and realised gain on investments for Q1FY23 grew 35% Y-o-Y

§  Operating Expenses at INR 2,042 Crs for Q1FY23, up 33% Y-o-Y and 6% Q-o-Q largely led by increase in loan sourcing fees, IT Spends and employee increments and welfare including Insurance

§  Operating profit stands at INR 590 Crs in Q1FY23. Normalised Operating Profit (adjusted for unrealised and realised gain on investments) grew 32% Y-o-Y

§  Provisions for Q1FY23 at INR 175 Crs declined 62% Y-o-Y and 36% Q-o-Q, aided by lower slippages at INR 1,072 Crs (vs. INR 2,233 Crs in Q1FY22)

§  Net Profit for Q1FY23 at INR 311 Crs up 50% Y-o-Y

Balance Sheet
 §  Net Advances at INR 186,367 Crs, up 14% Y-o-Y & 3% Q-o-Q

•       Sustained improvement in Granularity – Retail: Corp. mix at 62:38 up 240bps
Q-o-Q- Strategic Objective achieved one year ahead of time

•       Retail Advances mix at 38% vs. 31% in Q1FY22 and 36% in Q4FY22

•       New Sanctions / Disbursements of INR 22,636 Cr in Q1FY23

o    Gross Retail Assets Disbursements of INR 11,863 Cr

o    Rural Disbursements of INR 535 Crs

o    SME Disbursements1 of INR 5,001 Crs

o    Wholesale Banking Disbursements of nearly INR 5,237 Crs

§  Total Balance Sheet grew 17% Y-o-Y

§  Total Deposits at INR 193,241 Crs, up 18% Y-o-Y

•       CASA ratio 30.8% vs. 27.4% in Q1FY22; CASA continues to grow at nearly 2x rate of overall deposits growth

•       CASA + Retail TDs sustained at 62%2 of Total Deposits

•       3.0 Lacs CASA Accounts opened in Q1FY23- sustained momentum in customer acquisition

§  Average LCR during the quarter healthy at 118.8%3; LCR as on June 30, 2022 at 116.0%3

§  CET 14 ratio at 11.9%: Total CRAR4 at 17.7%; RWA to Total Assets at 73% vs. 82% in Q1FY22 and 73% in Q4FY22

§  Investments at INR 58,679 Crs up 26% Y-o-Y

§  Borrowings at INR 70,698 Crs up 12% Y-o-Y

      1 Includes Limit Setups,Based on Balances </= INR 2 Crs on an Account Level, 3 Consolidated Basis, 4 Includes Profits

Asset Quality
 §   Sustained Improvement in NPA Ratios

•       GNPA ratio at 13.4% vs. 15.6% in Q1FY22 and 13.9% in Q4FY22

•       NNPA ratio at 4.2% vs. 5.8% in Q1FY22 and 4.5% in Q4FY22

§   Slippages lower Y-o-Y

•       Q1FY23 at INR 1,072 Crs vs. INR 2,233 Crs in Q1FY22

§   Resolution Momentum continues with Total Recoveries & Upgrades for Q1FY23 at INR 1,532 Crs– in line with the Annual guidance of INR 5,000 Crs

Digital & Other Highlights/ Achievements
 §   Nearly every 3rd digital transaction undertaken in India is powered by YES Bank

§   Ranked 1 in NEFT Outward Volumes and UPI market share

§   YES Bank signs a binding term sheet with JCF ARC LLC & JC Flowers Asset Reconstruction Company (JC Flowers ARC) for strategic partnership in relation to sale of identified stressed loans of the bank

§   Launched a first of its kind floating rate Fixed Deposit linked to the RBI repo rate – an Intelligent Fixed Deposit with Dynamic Returns – acquired 14,000+ customers since launch

YES BANK’s Analyst conference call, scheduled on July 23, 2022 at 4:00 PM IST, can be heard at following link, post 10 PM:

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