Yes Bank reported a 10.26% year-on-year rise in its standalone net profit to Rs 342.52 crore for the fiscal first quarter ended June, from Rs 310.63 crore in the year-ago quarter.

The private sector lender posted higher core income but provisioned more for bad loans in the quarter ended 30 June 2023.

Provisions and contingencies more than doubled to Rs 360.3 crore from Rs 174.7 crore a year before.

The provision coverage ratio stood at 48.4% in Q1FY24 against 62.3% in Q4FY23.

Total income stood at Rs 7,584.34 crore, up 29% from Rs 5,876.01 crore in Q1FY23. 

NII and NIM

The bank’s net interest income – the difference between interest earned and interest expended – stood at Rs 1,999.6 crore, up 8.1% from the year-ago period.

Net interest margin (NIM) grew by 10 basis points year-on-year to 2.5%. 

Bad loans

The gross non-performing asset (NPA) ratio fell sequentially by 20 basis points to 2% from 2.20% at the end of March.

Net NPA ratio rose sequentially by 20 basis points to 1% from 0.80%.

The bank's gross slippages rose year-on-year to Rs 1,430 crore in Q1 FY24 from Rs 1,072 crore a year before.

Advances

The bank’s loan book grew 7.4% year-on-year to stand at Rs 2,00,204 crore as of Q1 FY24, up from Rs 1.86 lakh crore a year earlier.

Retail advances accounted for 47.2% of the mix, up from 38.6% a year ago and 45.5% a quarter ago.

The SME and medium corporates segments accounted for 14% each of the loan book while corporates comprised 25%.

Deposits 

Total deposits rose 13.5% year-on-year to Rs 2,19,369 crore. 

CASA (current account savings account) ratio to overall deposits fell to 29.4% year-on-year in Q1 FY24 from 30.8% a year before.

About 35,500 new CASA accounts were opened as the bank added 20 branches during the quarter to take the total branch count to 1,212.

"With the focus of the bank now firmly aligned towards improving the profitability of the franchise, over the coming quarters, we will continue to work on levers which further accelerate this momentum such as improvement in NIMs and CASA ratio, reducing the drag from legacy PSL requirements, further cross-sell and product penetration into our fast-expanding customer base, while continuing to maintain strict controls over costs," Yes Bank managing director and CEO Prashant Kumar said.