NPA Provision Coverage Ratio (PCR) at 70.0% v/s. 56.4% in Q2FY24 and 67.6% in Q1FY25
FinTech BizNews Service
Mumbai, 26 October, 2024: YES Bank today announced financial results for the quarter ended September 30, 2024.
Net Profit for Q2FY25 at INR 553 Crs up 145.6% Y-o-Y & 10.1% Q-o-Q
• Operating Profit at INR 975 Crs up 21.7% Y-o-Y and 10.2% Q-o-Q
• NII at INR 2,200 Crs for Q2FY25 up 14.3% Y-o-Y; NIMs stable Q-o-Q at 2.4%
• Non-Interest Income for Q2FY25 at INR 1,407 Crs up 16.3% Y-o-Y and 17.3% Q-o-Q
• Operating Expenses grew 12.8% Y-o-Y and 2.9% Q-o-Q
• Cost-to-Income Ratio lower at 73.0% v/s. 74.4% (Q2FY24) and 74.3% (Q1FY25)
• RoA for Q2FY25 at 0.5% v/s. 0.2% in Q2FY24 & 0.5% in Q1FY25
§ Balance Sheet momentum sustains with effective execution in line with strategic objectives
• Sustained momentum in Deposit accretion (up 18.3% Y-o-Y and 4.6% Q-o-Q)
• Strong expansion in CASA Ratio at 32.0% up 260 bps Y-o-Y and 120 bps Q-o-Q
• Net Advances Growth at 12.4% Y-o-Y aided by
o Sustained growth momentum in SME (up 25.8% Y-o-Y),
o Mid Corporate Advances (up 25.5% Y-o-Y), and
o Corporate Advances up 21.8% Y-o-Y and 4.6% Q-o-Q
o Retail Advances growth flattish, in line with strategy to improve profitability
• NIL PSL shortfall for Q2FY25 across overall requirement and sub-categories, through combination of further step up in organic balances and PSLC purchases
§ Sustained improvement in Asset Quality metrics: GNPA ratio down Q-o-Q, PCR at 70.0%
• GNPA ratio lower on both Y-o-Y & Q-o-Q basis at 1.6% v/s. 2.0% in Q2FY24 & 1.7% in Q1FY25
• (NNPA + net carrying value of SR) as % of Advances has more than halved on Y-o-Y basis at
0.9% in Q2FY25 v/s. 2.0% in Q2FY24; remains stable on Q-o-Q basis
• NPA Provision Coverage Ratio (PCR) at 70.0% v/s. 56.4% in Q2FY24 and 67.6% in Q1FY25
• Resolution momentum sustains with recoveries and resolutions at INR 1,021 Crs1 in Q2FY25
• Std. Restructured accounts amounted to INR 2,125 Crs (0.9% of Advances) down from 2.2% of Advances in Q2FY24 & 1.6% in Q1FY25. Q-o-Q reduction led by resolutions/ upgrades.
§ Credit Rating Upgrades from CRISIL and CARE: Bank’s Basel III Tier II Bonds and
Infrastructure Bonds ratings upgraded to A+ from A.
Commenting on the results and financial performance, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, “Q2FY25 performance has been encouraging, esp. if seen in the context of Industry headwinds. Deposit momentum has been maintained with 18% Y-o-Y growth, along with healthy CASA ratio (now at 32%) expansion on both Y-o-Y & Q-o-Q basis, on the back of CA growth at 26% Y-o-Y & 11% Q-o-Q and SA growth at 30% Y-o-Y & 7% Q-o-Q. At same time, the slippage ratio (at 2.2% of Advances) remains range-bound within the guidance range. Other Asset Quality parameters such as GNPA ratio, PCR and O/S Restructured loans have all improved on Q-o-Q basis.
The Bank continues to deliver as per the stated strategic objectives, with superior growth in SME and Mid Corporate segments, growth resumption in the Corporate segment and calibration of growth in Retail segment, aimed at profitability improvement. Bank also continues to maintain NIL PSL shortfalls.
These along with other drivers have enabled the Bank to deliver healthy Operating Profit and Net profit growth. The RoA of the Bank has been consistently at 0.5% over last 3 quarters. The Bank has also strengthened its management team with key senior hires in Retail Assets and Financial Markets Team. We have received external validation in the form of Credit Rating upgrades over the last 2 quarters. While we navigate the challenges in the operating environment, we remain confident of our progress towards building a franchise which delivers superior returns to our stakeholders.”
Financial Highlights |
Profit and Loss |
§ NII at INR 2,200 Crs for Q2FY25 up 14.3% Y-o-Y § NIMs at 2.4% for Q2FY25 vs. 2.3% in Q2FY24 & 2.4% in previous quarter § Non-Interest Income for Q2FY25 at INR 1,407 Crs. at 1.4% of Average Assets (annualized). Normalized for realized /unrealized gain on Investments & Treasury Income, Non-Interest Income growth at 12.6% Y-o-Y and 9.0% Q-o-Q § Operating Costs at INR 2,632 Crs up 12.8% Y-o-Y and 2.9% Q-o-Q. o PSLC costs incurred during the quarter aggregated to INR 78 Crs v/s. INR 39 Crs in Q2FY24. Excluding PSLC cost, Opex for Q2FY25 grew 11.3% Y-o-Y & 2.4% Q-o-Q § Operating Profit for Q2FY25 at INR 975 Crs, up 21.7% Y-o-Y and 10.2% Q-o-Q § Cost-to-Income Ratio lower at 73.0% v/s. 74.4% (Q2FY24) and 74.3% (Q1FY25) § Q2FY25 Provision Cost (non-tax) at INR 297 Crs down 40.6% Y-o-Y § Net Profit for Q2FY25 at INR 553 Crs up 145.6% Y-o-Y & 10.1% Q-o-Q § RoA for Q2FY25 at 0.5% v/s. 0.2% in Q2FY24 & 0.5% in Q1FY25 |
Balance Sheet |
§ Net Advances at INR 2,35,117 Crs, registered growth of 12.4% Y-o-Y and 2.4% Q-o-Q • Granular/ Diversified loan book – Retail & SME: Mid Corp.: Corp. mix at 59:16:25 vs. 61:14:25 last year and 60:15:25 last quarter • Robust momentum in Fresh Disbursements at INR 23,998 Crs in Q2FY25 § Total Balance Sheet grew 14.5% Y-o-Y § CD Ratio at 84.8% vs. 89.2% in Q2FY24 and 86.6% in Q1FY25 § Total Deposits at INR 2,77,214 Crs, up 18.3% Y-o-Y and 4.6% Q-o-Q • CASA ratio at 32.0% vs. 29.4% in Q2FY24 and 30.8% Q-o-Q • Current Account balances grew 26.2% Y-o-Y and 11.1% Q-o-Q • Savings Account balances growth at 30.5% Y-o-Y and 6.6% Q-o-Q • Retail CASA Accounts opened: ~3.64 lakhs in Q2FY25 § Average Quarterly LCR (on consolidated basis) during the quarter remains healthy at 132.0% § CET 1 ratio at 13.2%: Total CRAR at 16.1%. • RWA to Total Assets at 70.7% vs. 70.6% in Q2FY24 and 70.3% in Q1FY25 |
Asset Quality |
§ (NNPA + net carrying value of SR) as % of Advances at 0.9% in Q2FY25 v/s. 2.0% in Q2FY24; remains steady on Q-o-Q basis; Credit cost remains benign at 0.3% of Average Assets for Q2FY25 (on annualized basis) • GNPA ratio at 1.6% as of September 30, 2024, v/s 2.0% at Q2FY24 and 1.7% at Q1FY25 • NNPA ratio at 0.5% v/s. 0.9% in Q2FY24 and 0.5% in Q1FY25 • NPA Provision Coverage Ratio (PCR) at 70.0% v/s. 56.4% in Q2FY24 and 67.6% in Q1FY25; Including Technical Write- offs, PCR at 81.5% v/s. 72.1% in Q2FY24 and 80.1% in Q1FY25 |
§ Gross Slippages for Q2FY25 at INR 1,314 Crs v/s. INR 1,263 Crs in Q2FY24 and INR 1,204 Crs in Q1FY25 § Overdue book of 31-90 days at INR 3,762 Crs from INR 3,898 Crs in Q2FY24 and INR 3,623 Crs in Q1FY25 • 31-60 days book at INR 1,896 Crs v/s. INR 1,815 Crs last quarter • 61-90 days book at INR 1,866 Crs v/s. INR 1,809 Crs last quarter § Resolution momentum sustains with recoveries and resolutions at INR 1,021 Crs2 in Q2FY25; cumulative recoveries and resolutions in H1FY25 at INR 2,600 Crs |
