Yes Bank Sees 46.7% Surge in Q1 Profit Amid Reduced Provisions and Strong Growth

Yes Bank announced a 46.7% increase in net profit to Rs 502 crore for Q1 2024, driven by reduced provisions and higher net interest income. The bank also saw significant growth in deposits and other income while maintaining strong asset quality and capital adequacy. Plans for loan and branch expansions were also highlighted.

Private sector lender Yes Bank reported a 46.7% increase in net profit to Rs 502 crore for the June 2024 quarter, attributing the growth to a reduction in provisions.

The city-headquartered bank's core net interest income increased by 12.2% to Rs 2,000 crore, while its net interest margin remained flat at 2.4%. Deposits rose by over 20% amid industry struggles.

The bank's other income grew by 5.1% to Rs 1,141 crore during the quarter, while overall provisions declined by 41.2% to Rs 212 crore, credited to recoveries on bad assets transferred to JC Flowers Asset Reconstruction Company.

The investment provision writebacks amounted to Rs 318 crore, compared to an outgo of Rs 144 crore in the year-ago period. Taxation provisions rose to Rs 171 crore from Rs 116 crore, and non-performing asset provisions jumped to Rs 513 crore from Rs 314 crore as the provision coverage ratio increased.

The bank acknowledged stress in the problematic unsecured advances portfolio, leading to a cautious approach in the segment, but expressed confidence in improvement over the next two quarters.

Yes Bank's overall gross non-performing asset ratio remained flat at 1.7%, with gross slippages down to Rs 1,205 crore in the quarter.

MD and CEO Prashant Kumar projected a loan growth target of 16-17% for FY25, primarily from mid-market and small business segments, with large corporate balances aimed to grow at 10%.

The bank achieved its priority sector loan target for the June quarter and plans to reduce the RIDF balance share in its loan book to below 5% within three years.

Yes Bank also plans to open up to 50 new branches in FY25, having launched 140 branches in the last 18 months. Its overall capital adequacy stood at 16.5%, with core buffers at 13.6%.

CEO Kumar declined to comment on potential stake sales by its largest owner SBI or RBI approvals.