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InFocus Banking & Finance

YES BANK Sees 20.8% Growth in Deposits Y-o-Y in Q1FY25

Mr. Prashant Kumar, Managing Director & CEO, YES BANK said The Bank has started the financial year on a strong footing with RoA sustaining Q-o-Q at 0.5% despite seasonality of Q1 and NIL PSL shortfalls.

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Key Highlights

  • Net Profit for Q1FY25 at INR 502 Crs up 46.7% Y-o-Y & 11.2% Q-o-Q

  • NIMs for Q1FY25 steady Q-o-Q at 2.4%

  • Non-Interest Income for Q1FY25 at INR 1,199 Crs. Normalised growth at 20.5% Y-o-Y1 

  • NIL PSL shortfall for Q1FY25 across overall requirement and sub-categories, through combination of further step up in organic balances and PSLC purchases 

  • Net Provision Costs lower by 41.2% Y-o-Y & 55.0% Q-o-Q

  • RoA for Q1FY25 at 0.5% v/s. 0.4% in Q1FY24 & 0.5% in Q4FY24

  • Balance Sheet momentum sustains with effective execution in line with strategic objectives 

  • Robust Deposit accretion (up 20.8% Y-o-Y) 

  • CASA Ratio flattish Q-o-Q at 30.8% despite Q1 seasonality

  • Net Advances Growth at 14.7% Y-o-Y aided by 

    • Sustained growth momentum in SME (at 23.8% Y-o-Y), 

    • Mid Corporate Advances (at 25.0% Y-o-Y), and 

    • Resumption of growth in Corporate segment (13.8% Y-o-Y growth)

  • Sustained improvement in Asset Quality metrics: (NNPA + net carrying value of SR) below 1%

  • GNPA at 1.7%, NNPA at 0.5%, PCR at 67.6% (up 100 bps Q-o-Q)

  • (NNPA + net carrying value of SR) as % of Advances continued to improve to 0.9% in Q1FY25 v/s. 2.4% in Q1FY24 and 1.1% in Q4FY24

  • Strong Resolution momentum with recoveries/ resolutions at INR 1,581 Crs2 in Q1FY25

  • During the quarter both CA Basque Investments and Verventa Holding Ltd. have exercised the outstanding Warrants- the proceeds resulting in 100 bps accretion to CET I% 

  • Global Rating Agency Moody’s Upgraded the Rating Outlook to “Positive” from “Stable” in July 2024. ICRA has also upgraded the Credit Rating on Bank’s instruments from A- to A


Commenting on the results and financial performance, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, “The Bank has started the financial year on a strong footing with RoA sustaining Q-o-Q at 0.5% despite seasonality of Q1 and NIL PSL shortfalls. While the Income Engines are continuing to fire with normalised Net Income Growth at 15% Y-o-Y, the Bank has been able to contain the Operating Cost growth at 8.0% Y-o-Y (ex- PSLCs). At the same time, the resolution momentum continues to be strong, leading to lower Net Credit Costs, which is also aiding in RoA expansion. 

On the Balance Sheet front, the Bank is effectively executing its strategic objectives of sustained momentum in SME and Mid- Corporate segments, resumption of growth in Corporate segment and calibration in Retail Assets with focus on profitability. Similarly, the Retail and Branch Banking led Deposits continue to grow at faster pace than Wholesale Deposits.

Other key highlights of the quarter were i) exercise of outstanding Warrants by the Private Equity Investors, and ii) Credit Rating Outlook upgrade by Moody’s and Credit Rating upgrade by ICRA- these external stakeholder validations reinforce faith & confidence in the growth and profitability expansion trajectory of the franchise.”

Financial Highlights

Profit and Loss

  • NII at INR 2,244 Crs for Q1FY25 up 12.2% Y-o-Y & 4.2% Q-o-Q. 

  • NIMs at 2.4% for Q1FY25 vs. 2.5% in Q1FY24 & 2.4% last quarter

  • Non-Interest Income for Q1FY25 at INR 1,199 Crs. Normalised Growth at 20.5% Y-o-Y

  • Operating Costs at INR 2,558 Crs up 10.1% Y-o-Y but down 9.3% Q-o-Q. 

    • PSLC costs incurred during the quarter aggregated to INR 63 Crs v/s. INR 13 Crs in Q1FY24. Excluding PSLC cost, Opex for Q1FY25 grew 8.0% Y-o-Y

  • Operating Profit for Q1FY25 at INR 885 Cr, up 8.2% Y-o-Y. Normalised growth (ex- PSLC and realised/ unrealised gain on Investments & Treasury Income) at 37.6% Y-o-Y

    • Normalized C/I Ratio 71.8% v/s. 76.4% (Q1FY24) and 71.5% (Q4FY24) 

  • Q1FY25 Provision Cost (non-tax) at INR 212 Crs down 41.2% Y-o-Y & 55.0% Q-o-Q

  • Net Profit for Q1FY25 at INR 502 Crs up 46.7% Y-o-Y & 11.2% Q-o-Q. 

  • RoA for Q1FY25 at 0.5% v/s. 0.4% in Q1FY24 & 0.5% in Q4FY24

Balance Sheet


  • Net Advances at INR 2,29,565 Crs, registered growth of 14.7% Y-o-Y and 0.8% Q-o-Q 

    • Granular/ Diversified loan book – Retail & SME: Mid Corp.: Corp. mix at 60:15:25 vs. 61:14:25 last year and 62:15:23 last quarter

    • Fresh Disbursements of INR 20,910 Cr in Q1FY25 

  • Retail Assets Disbursements of INR 7,440 Cr 

  • Rural Assets Disbursements of INR 963 Cr 

  • SME Disbursements1 of INR 7,020 Cr 

  • Mid Corporate Disbursements of INR 1,429 Cr 

  • Total Balance Sheet grew 14.6% Y-o-Y

  • CD Ratio at 86.6% vs. 85.5% in Q4FY24 and 91.3% in Q1FY24

  • Total Deposits at INR 2,65,072 Crs, up 20.8% Y-o-Y but marginally down by 0.5% Q-o-Q

    • CASA ratio at 30.8% vs. 29.4% in Q1FY24 and 30.9% Q-o-Q

    • Retail CASA Accounts opened: ~3.78 lakhs in Q1FY25

    • Retail and Small Business Deposits (Gross LCR Definition) grew 13% Y-o-Y

  • Average Quarterly LCR2 during the quarter remains healthy at 137.8%; LCR as on June 30, 2024 at 141.2%

  • CET 1 ratio at 13.3%: Total CRAR at 16.5%.

    • RWA to Total Assets at 70.3% vs. 69.1% in Q1FY24 and 70.3% in Q4FY24

  • Investments at INR 88,515 Cr up 24.7% Y-o-Y 

  • Borrowings at INR 80,128 Cr up 7.2% Y-o-Y 

1 Includes limit set-ups; 2On consolidated basis

Asset Quality

  • (NNPA + net carrying value of SR) as % of Advances at 0.9% in Q1FY25 v/s. 1.1% in Q3FY24 and 2.4% in Q1FY24

    • GNPA ratio at 1.7% as of June 30, 2024, v/s 1.7% at Q4FY24 and 2.0% at Q1FY24

    • NNPA ratio improved to 0.5% v/s. 0.6% last quarter and 1.0% at Q1FY24

  • Gross Slippages for Q1FY25 at INR 1,205 Crs v/s. INR 1,482 Crs in Q1FY24 and INR 1,356 Crs in Q4FY24

    • Slippages Net of Recoveries and Upgrades in Q1FY25, at INR 499 Cr v/s. INR 808 Crs in Q1FY24 and INR 370 Crs in Q4FY24

  • Overdue Book of 31-90 days down to INR 3,623 Cr vs INR 3,684 Cr Q4FY24 and INR 3,863 Crs in Q1FY24

    • 31-60 days book at INR 1,815 Cr vs INR 1,805 Cr last quarter

    • 61-90 days book at INR 1,809 Cr vs INR 1,879 Cr last quarter

  • Resolution momentum continues to be strong with Total Recoveries & Upgrades for Q1FY25 at INR 1,581 Crs 

Digital & Other Highlights/ Achievements 

  • During the quarter both CA Basque Investments and Verventa Holding Ltd. have exercised the outstanding Warrants- the proceeds resulting in 100 bps accretion to CET I% 

  • Global Rating Agency Moody’s Upgraded the Rating Outlook to “Positive” from “Stable” in July 2024. As per Moody’s, this reflects their “expectation that a gradual improvement in YES BANK's depositor base and lending franchise will help improve its core profitability over the next 12-18 months”

  • ICRA upgraded Credit rating on Basel III Tier II Bonds and Infrastructure Bonds from A- to A

  • Introduced YES Grandeur: A Premier Banking Experience for the Elite and Emerging Affluent Segments

  • Announced Strategic Partnership with EBANX- a Brazil based global fintech company to empower Cross-Border Commerce in India. EBANX specializes in payment solutions for Emerging Markets and will provide leverage to the Bank’s presence in cross-border payment processing and global commerce opportunities for merchants and customers in India. 

  • Launched Yes Private Business, an enterprise banking program that seamlessly blends a full array of business banking solutions along with best-in-class service delivery

 

YES BANK’s Analyst conference call, scheduled on July 22, 2024 at 8:00 AM IST, can be heard at following link: https://www.yesbank.in/about-us/investor-relations/financial-information/financial-results

 



Financial Highlights from Q1FY25

Profit & Loss Statement Highlights

(INR Crs)

Q1FY25

Q4FY24

Q-o-Q %

Q1FY24

Y-o-Y %

Net Interest Income

2,244

2,153

4.2%

2,000

12.2%

Non-Interest Income

1,199

1,569

-23.6%

1,141

5.1%

Total Net Income

3,443

3,722

-7.5%

3,141

9.6%

Operating Profit/(Loss)

885

902

-1.9%

818

8.2%

Provisions

212

471

-55.0%

360

-41.2%

Net Profit / (Loss)

502

452

11.2%

343

46.7%

Basic EPS (INR)

0.16

0.16

4.6%

0.12

38.0%

Key P & L Ratios

 

Q1FY25

Q4FY24

 

Q1FY24

 

Return on Assets 1

0.5%

0.5%

0.4%

Return on Equity 1 

4.5%

4.3%

3.3%

NIM

2.4%

2.4%

2.5%

Cost to Income

74.3%

75.8%

73.9%

Non-interest Income to Total income

34.8%

42.1%

36.3%


Balance Sheet Highlights

(INR Crs)

30-Jun-24

31-Mar-24

Q-o-Q %

30-Jun-23

Y-o-Y %

Advances

229,565

227,799

0.8%

200,204

14.7%

Deposits

265,072

266,372

-0.5%

219,369

20.8%

Shareholder’s Funds

45,649

42,145

8.3%

41,161

10.9%

Total Capital Funds

47,389

43,792

8.2%

45,048

5.2%

Total Assets

407,697

405,493

0.5%

355,754

14.6%

Key Balance Sheet Ratios

CRAR 2

16.5%

15.4%







18.3%

 

 

 

 

 

 

 

 

 

 

CET I 2

13.3%

12.2%

13.6%

Book Value per share (INR)

14.6

14.7

14.3

Gross NPA (%)

1.7%

1.7%

2.0%

Net NPA (%)

0.5%

0.6%

1.0%

NPA PCR 3 

80.1%

79.3%

67.8%

Std. Restructured Advances (Gross) 4

3,643

3,792

4,682

Security Receipts (Net) 

857

1,284

2,651

CASA Ratio

30.8%

30.9%

29.4%

Average LCR

137.8%

116.1%

127.0%
Yes Bank financial growth Deposits