Mumbai-based Yes Bank presented its third-quarter earnings for FY23 on Saturday. The bank posted a PAT of ₹51.52 crore in Q3FY23 as against ₹266.43 crore in the same quarter last year, registering a decline of 80.66%. Also, PAT dropped by 66.28% compared to ₹152.82 crore in the preceding quarter. Among the major highlights of Q3 is that Yes Bank’s gross NPA reached its lowest level since Q3 of FY19, due to the transfer of stressed assets to asset reconstruction company, JC Flowers.
During the quarter, net interest income (NII) came in at ₹1,971 crore up by 11.7% YoY but marginally down by 1% QoQ. Net interest margin (NIM) expanded by 10 bps YoY to 2.5% in Q3FY23, however, was down by 10 bps QoQ.
The lender sustained improvements in NPA ratios during Q3. The bank’s gross NPA dropped by 12.63% to 2.02% in Q3FY23 compared to 14.65% in Q3 of the previous fiscal. Also, gross NPA contracted by 10.87% compared to 12.89% in September 2022 quarter. Net NPA also declined sharply to 1.03% in Q3FY23 versus 5.29% in Q3FY22 and 3.60% in Q2FY23.
Also, in value terms, gross NPA fell to ₹3,903.68 crore in the third quarter of FY23, compared to ₹28,654.49 crore in Q3 of the previous fiscal and ₹27,419.11 crore in Q2FY23.
Prashant Kumar, MD & CEO 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 CETI 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, Kumar added, “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’s gross slippages during the quarter were at ₹1,607 crore. Recoveries and upgrades from fresh slippages were at ₹500 crore in Q3 — taking net slippages to ₹1,100 crore. Yes Bank said, resolution momentum continues with Total Recoveries & Upgrades for Q3FY23 at ₹1,270 crore, well on track to achieve the FY23 guidance.
However, despite a significant plunge in gross NPA, Yes Bank’s provisions and contingencies climbed sharply by 125.48% to ₹844.75 crore in Q3FY23 compared to ₹374.64 crore in Q3FY22 and also up by 44.94% from ₹582.81 crore in Q2FY23.
In regards to the balance sheet, Yes Bank’s net advances climbed by 10.4% YoY and 1.2% QoQ to ₹194,573 crore in Q3FY23. The bank’s retail advances mix was at 44% in Q3FY23 versus 41% in Q2FY23.
The bank’s new disbursements were to the tune of ₹27,311 crore in Q3FY23 — of which — ₹12,667 crore was gross retail assets disbursements, ₹806 crore rural disbursements, ₹6,104 crore SME sanctions, and ₹7,724 crore wholesale banking disbursements.
While total deposits scaled up by 15.9% YoY and 6.8% QoQ to ₹213,608 crore. CASA ratio at 29.9% up 31% in Q2FY23 and 30.4% in Q3FY23. The bank opened 3.40 lakh CASA accounts in Q3FY23 versus 3.31 lakh in Q2FY23.
Yes Bank’s average liquidity coverage ratio stood healthy at 113.3% in Q3 of FY23.
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