Yes Bank fell 8.59%to Rs 18.10 after the private lender's standalone net profit slumped 80.7% to Rs 51.52 crore on 24.6% rise in total income to Rs 7015.18 crore in Q3 FY23 over Q3 FY22.
The bank said that net profit was largely impacted due to ageing related provisions. Profit before tax in Q3 FY23 stood at Rs 68.88 crore, down by 80.7% from Rs 356.04 crore in Q3 FY22.Operating profit stood at Rs 914 crore in Q3FY23, up 25% Y-o-Y and 15.6% Q-o-Q. This is the highest operating profits in the last 8 quarters.
Net interest income (NII) at Rs 1,971 crore for Q3FY23, grew 11.7% Y-o-Y and declined 1.0% Q-o-Q. NIM for Q3FY23 at 2.5% up nearly 10 bps Y-o-Y and down 10 bps Q-o-Q. Adjusted for interest recovery on NPAs last quarter, normalized NIMs was flat Q-o-Q.
On asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 3903.68 crore as on 31 December 2022 as against Rs 27419.11 crore as on 30 September 2022 and Rs 28654.49 crore as on 31 December 2021.
The gross NPA were at 2.02% of gross advances as on 31 December 2022 as against 12.89% as on 30 September 2022 and 14.65% as on 31 December 2021.
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The net NPA was at 1.03% of net advances as on 31 December 2022 as against 3.60% as on 30 September 2022 and 5.29% as on 31 December 2021.
Gross slippages were at Rs 1,607 crore. Recoveries & upgrades from fresh slippages have been about Rs 500 crore during Q3, leading to net slippage of about Rs 1,100 crore.
The bank's advances grew 10% Y-o-Y, while deposits growth was at 16% Y-o-Y.
CASA ratio stood at 29.9% as against 31% in Q2FY23. Average CASA improved by 20.3% Y-o-Y.
Total recoveries & upgrades for Q3FY23 stood at Rs 1,270 crore, It is well on track to achieve the FY23 guidance of Rs 5,000 crore.
Commenting on the results and financial performance, Prashant Kumar, MD & CEO, Yes Bank said, "During the quarter, the Bank successfully closed two deals which are strategic and transformational in this new journey of the Bank. The successful Capital Raise has aided in significant expansion in our Capital Base, and post full consummation, our CET-I Ratio will reach an extremely comfortable level. Moreover, with successful transfer of stressed Assets to the JC Flowers ARC, the GNPA and NNPA Ratios have now declined to 2% and 1% respectively which is the lowest since Q3FY19. At the same time, the operational momentum of the bank continues with further step-up in disbursements across segments and highest operating profit in the last eight quarters."
The bank said it concluded capital raise of about Rs 8,900 crore in Q3FY23. Pursuant to this, the bank received Rs 5,093 crore towards equity investments and Rs 948 crore towards warrants application.
The bank appointed Sunil Kaul (Carlyle) and Shweta Jalan (Advent) as additional directors onto the board.
The bank completed assignment of identified pool of stressed assets to the J.C. Flowers ARC. This is single largest transaction of sale of non-performing assets in Indian Banking System.
Yes Bank is a full service commercial bank providing a complete range of products, services and technology driven digital offerings, catering to retail, MSME as well as corporate clients.
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