Yes Bank is confident of 15% credit growth in FY23

Yes Bank management on Saturday said that it is confident of meeting the 15% credit growth guidance for the fiscal year 2023, even as it reported a 50% year-on-year jump in net profit during the first quarter of the fiscal year owing to lower provisions. The private sector lender reported a net profit of ₹314 crore at the end of the June quarter, as against ₹203 crore during the corresponding period last year.

Yes Bank also reported a 32% year-on-year jump in net interest income to ₹1,850 crore at the end of the June quarter. Net interest margins marginally reduced to 2.4% as of June end from 2.5% in the previous quarter.

Its loan book grew 14% YoY led by strong retail growth of 38%. Corporate disbursements stood at ₹4390 crore during the quarter. Deposits book grew by around 18% YoY with CASA ratio marginally falling to 30% at the end of June from 31.1% at the end of March. The management also added that it managed to raise ₹300 crore from 14,000 customers via the newly launched floating rate deposits.

Yes Bank also managed to improve its asset quality in the first quarter. Its total provisions declined 62% year-on-year to ₹175 crore as of June end, primarily aided by lower slippages. Even on a sequential basis, provisions fell from ₹271 crore at the end of the March quarter.

Gross non-performing assets as a percentage of total assets stood at 13.40% in Q1FY23 as against 15.6% during the corresponding period last year and 13.9% in the fourth quarter. The bank’s Net NPA ratio also improved to 4.2% in Q1FY23 as against 5.8% in Q1FY22 and 4.5% in Q4FY22.

Slippages of Yes Bank came down to ₹1,072 crore in Q1FY23 as against ₹2,233 crore in Q1FY22.

“We have crystallized all loans which have become NPA as on 30 September 2021. Post this, whatever slippages that get added will not be part of the ₹48,000 crore transferred to the asset reconstruction company (ARC). We will see 1.5-2% of total NPA in the book,” said Prashant Kumar, MD & CEO, Yes bank. “our long term target to reach minimum NPA at the bank,” headed.

The bank said it has appointed former RBI deputy governor R Gandhi as an additional director on the board. This comes after Gandhi’s term as the RBI nominee director came to an end this month.