Yes Bank Q3 PAT grows over threefold on improved asset quality

Yes Bank's Q3 net profit grew over threefold to ₹231 crore, aided by lower provisions and increased recoveries and upgrades.

Yes Bank reported third-quarter net profit grew more than threefold to ₹231 crore for period ended December 31, 2023 as compared with ₹52 crore in the year-earlier period, aided by lesser provisions.

During the quarter, the bank reported net interest income of ₹2,017 crore compared with ₹1,971 crore in the year-earlier period. Provisions were lower at ₹555 crore as compared with ₹845 crore the year earlier.

Gross slippages were lower at ₹1,233 crore as compared with ₹1,610 crore in the same period last year.

Gross NPA was at 2%, the same level a year ago. Net NPA reduced to 0.9% from 1% a year ago.

The bank said resolution momentum was strong with total recoveries and upgrades for the quarter  at ₹1,316 crore. Year to data in FY24 the cumulative recoveries and upgrades were at ₹3,869 crore.

“Over the last few quarters, we have remained focussed on executing our profitability improvement roadmap by leveraging our core and key business levers of retail asset mix optimisation, SME and mid-market strong value proposition, fully exploiting our branches and leveraging our digital and transaction banking capabilities, and fully sweating our branches as the fulcrum of the business to drive higher cross sell and lower our costs going forward,” said MD & CEO Prashant Kumar.

“The early progress of the above has started to reflect through a number of underlying business vectors which we have reported this quarter. Aside that, Q3 FY24 overall was a good quarter for us with deposit growth outpacing advances growth, sequential improvement in CASA ratio and net interest margins,” he said.