YES BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2024
- Net Profit for Q4FY24 at INR 452 Crs up 123.2% Y-o-Y & 95.2% Q-o-Q. FY24 Net Profit at INR 1,251 Crs up 74.4% Y-o-Y
- NIMs for Q4FY24 steady Q-o-Q at 2.4%
- Non-Interest Income: Strong momentum across diverse and granular fee streams: Q4FY24 up 56.3% Y-o-Y and 31.3% Q-o-Q. FY24 Non-Interest Income up 38.8% Y-o-Y
- Negligible PSL shortfall for FY24 through combination of step up in organic balances and PSLC purchases: overall, SMF and Weaker Section fully complied
- Net Provision Costs lower (down 23.8% Y-o-Y for Q4FY24 and 15.0% Y-o-Y for FY24)
- RoA for Q4FY24 at 0.5% v/s. 0.2% in Q3FY24 & Q4FY23
- Non-Core/ One off gains (tax refunds, SR recoveries and ARC sale gains) majorly utilized for further improving the Asset Quality metrics and Provision Coverage Ratio
Balance Sheet crossed INR 4 lakh Crs during the Quarter
- Robust Deposit accretion (up 22.5% Y-o-Y and 10.1% Q-o-Q) and improvement in CASA Ratio (up 120 bps Q-o-Q and 10 bps Y-o-Y) to 30.9%
- Net Advances Growth (ex- reverse repo) at 13.8% Y-o-Y aided by sustained growth momentum in SME and Mid Corporate Advances (at 25%+ Y-o-Y) and resumption of growth in Corporate segment
Sustained improvement in Asset Quality metrics: GNPA at 1.7%, NNPA at 0.6%, PCR at 66.6%
- GNPA, NNPA Ratio (each down 30 bps Q-o-Q) and PCR (up 10 percentage points) significantly improve Q-o-Q
- Strong Resolution momentum with recoveries and resolutions at INR 2,092 Crs1 in Q4FY24 and INR 5,978 Crs1 in FY24- in line with guidance at the beginning of the year
- 60 bps Q-o-Q reduction in (NNPA + net carrying value of SR) % to 1.1% of Advances
- PayTM Partnership: Offering of services to both existing and new Consumers (as PSP Payment Bank) and Merchants (collections) as well as providing settlement services
- Post Mar 31, 2024, CA Basque Investments (affiliate of the Carlyle Group) has exercised its Warrants. On pro-forma basis, CET-I% as at March 31, 2024, including these proceeds is at 12.7%
- Principal sponsor - Indian Olympic Association (IOA) as their Official Banking Partner for team India for Paris Olympics 2024
1 Including redemption of Security Receipts of INR 985 Crs in Q4FY24 and INR 2,543 Crs in FY24
Commenting on the results and financial performance, Mr. Prashant Kumar, Managing Director & CEO, YES BANK said, “This quarter demonstrates a significant step in the RoA expansion journey, with Q4FY24 RoA expanding to 0.5%. This is despite the one-off gains from tax refunds, SR recoveries and ARC Sale, being prudently utilized for strengthening the Asset Quality metrics- for instance, the NNPA + Net Carrying value of SRs have more than halved over the course of the year to 1.1% from 2.4% in FY23.
Moreover, we continue to witness strong momentum in our liability franchise with growth in Deposits expanding to over 20% Y-o-Y for first time in last 8 quarters. Importantly, despite challenging environment during the course of the year, our CASA ratio has expanded 10 bps Y-o-Y to 30.9%.
This quarter, the Bank continued to expand on its digital footprint with significant partnerships reflecting the inherent strength in the capabilities and technology infrastructure of the Bank.
As the Bank embarks on the fifth year of this new journey, we remain focused on diligently executing the RoA expansion roadmap.”
Financial Highlights
Profit and Loss
- NII at INR 2,153 Crs for Q4FY24 up 2.3% Y-o-Y & 6.8% Q-o-Q. FY24 NII at INR 8,095 Crs up 2.2% Y-o-Y
- NIMs at 2.4% for Q4FY24 vs.2.8% in Q4FY23 & 2.4% last quarter. FY24 NIMs at 2.4%
- Non-Interest Income for Q4FY24 at INR 1,569 Crs, up 56.3% Y-o-Y & 31.3% Q-o-Q. Non-Interest Income for FY24 at INR 5,114 Crs up 38.8% Y-o-Y
- Operating Costs at INR 2,819 Crs up 27.0% Y-o-Y. PSLC costs incurred during the quarter aggregated to INR 254 Crs v/s. NIL in Q4FY23. Excluding PSLC cost,
o Opex for Q4FY24 grew 15.5% Y-o-Y
o FY24 Opex grew 12.2% Y-o-Y v/s. 13.8% Y-o-Y growth in Total Income
- Operating Profit for Q4FY24 stands at INR 902 Cr, up 1.5% Y-o-Y and 4.4% Q-o-Q. Operating Profit for FY24 at INR 3,386 Crs up 6.4% Y-o-Y
- Provision Cost (non-tax) at INR 471 Crs for Q4FY24 down 23.8% Y-o-Y & 15.1% Q-o-Q; FY24 Provision Costs at INR 1,886 Crs down 15.0% Y-o-Y
- Income Tax refunds (including Interest on the Refund of INR 118 Crs accounted in Other Income) aggregating to the tune of INR 247 Crs received during the quarter
- Net Profit for Q4FY24 at INR 452 Crs up 123.2% Y-o-Y & 95.2% Q-o-Q. FY24 Net Profit at INR 1,251 Crs up 74.4% Y-o-Y
- RoA for Q4FY24 at 0.5% v/s. 0.2% in Q4FY23 & Q3FY24. FY24 RoA at 0.3% v/s. 0.2% in FY23 despite higher balances in Deposits placed in lieu of PSL shortfalls and PSLC costs
Balance Sheet
Net Advances at INR 2,27,799 Cr, registered growth of 12.1% Y-o-Y and 4.7% Q-o-Q
- Granular/ Diversified loan book – Retail & SME: Mid Corp.: Corp. mix at 62:15:23 vs. 59:14:27 last year and 63:14:23 last quarter
- Fresh Disbursements of INR 32,709 Cr in Q4FY24 & INR 114,000 Crs in FY24
o Retail Asset Disbursements of INR 9,489 Cr in Q4FY24 (INR 41,713 Crs for FY24)
o Rural Disbursements of INR 1,182 Cr (INR 3,925 Crs for FY24)
o SME Disbursements1 of INR 8,497 Cr (INR 31,919 Crs for FY24)
o Mid Corporate Disbursements of INR 2,635 Cr (INR 6,492 Crs for FY24)
- Total Balance Sheet grew 14.3% Y-o-Y
- CD Ratio at 85.5% vs. 89.9% in Q3FY24 and 92.0% in Q4FY23
- Total Deposits at INR 2,66,372 Cr, up 22.5% Y-o-Y and 10.1% Q-o-Q
- CASA ratio at 30.9% vs. 30.8% in Q4FY23 and 29.7% Q-o-Q
- Retail CASA Accounts opened: ~409K in Q4FY24 and ~15.3 lacs in FY24
- Retail and Small Business Deposits (Gross LCR Definition) grew 18% Y-o-Y
- Average Quarterly LCR during the quarter remains healthy at 116.1%; LCR as on December 31, 2023 at 118.4%
- CET 1 ratio at 12.2%: Total CRAR at 15.4%. Proforma CET-1% as at March 31, 2024 including the proceeds from Warrants conversion done post March 31, 2024 at 12.7%
- RWA to Total Assets at 70.3% vs. 69.0% in Q4FY23 and 71.1% in Q3FY24
- Investments at INR 90,235 Cr up 17.4% Y-o-Y
- Borrowings at INR 79,941 Cr up 3.2% Y-o-Y
1 Includes limit set-ups
Asset Quality
- (NNPA + net carrying value of SR) as % of Advances at 1.1% in Q4FY24 v/s. 1.7% in Q3FY24 and 2.4% in Q4FY23
- GNPA ratio at 1.7% as of Mar 31, 2024, v/s 2.0% at Q3FY24 and 2.2% at Q4FY23
- NNPA ratio improved to 0.6% v/s. 0.9% last quarter and 0.8% at Q4FY23
- Gross Slippages for Q4FY24 at INR 1,356 Crs v/s. INR 1,233 Crs in Q3FY24. Gross Slippages for FY24 at INR 5,334 Crs v/s. INR 4,775 Crs in FY23
- Slippages Net of Recoveries and Upgrades in Q4FY24, at INR 370 Cr vs. INR 574 Cr last quarter
- Overdue Book of 31-90 days down to INR 3,684 Cr vs INR 4,378 Cr Q3FY24 and INR 4,786 Crs in Q4FY23
- 31-60 days book at INR 1,805 Cr vs INR 2,327 Cr last quarter
- 61-90 days book at INR 1,879 Cr vs INR 2,051 Cr last quarter
- Resolution momentum continues to be strong with Total Recoveries & Upgrades for Q4FY24 at INR 2,092 Crs and INR 5,978 Crs for FY24
Digital & Other Highlights/ Achievements
- Principal sponsor - Indian Olympic Association (IOA) as their Official Banking Partner for team India for Paris Olympics 2024
- PayTM Partnership: Offering of services to both existing and new Consumers (as PSP Payment Bank) and Merchants (collections) as well as providing settlement services
- Launched YES Pay Next, a cutting-edge UPI payments app which provides a seamless, secure, and smarter way to manage transactions
- MSME Banking Excellence Awards 2023, organized by CIMSME: Awarded Best Bank for Promoting Govt. Schemes in private sector, runners-up for Best MSME Bank in the private sector
- For 2nd year in a row, certified as Great Place To Work®. Also ranked among the top 50 in ‘India's Best Workplaces in BFSI 2024’ by Great Place to Work® (GPTW) Institute, India
- First Indian Bank to conduct Export Finance Transaction on RXIL’s (Receivables Exchange of India Limited) ITFS (International Trade Finance Service) platform