| Key Highlights |
| ▪ Operating Profits at INR 790 Crs in Q2FY23 grew 17% Y-o-Y: highest in last 7 quarters • NIMs at 2.6% up 40 bps Y-o-Y and 20 bps Q-o-Q • Cost to Income ratio improved to 72.8% from 77.6% in Q1FY23 • Net Profits at INR 153 Crs– largely impacted due to ageing related provisioning requirement during Q2FY23 ▪ Advances grew 11% Y-o-Y, Deposits growth at 13% Y-o-Y; Balance Sheet up 16% Y-o-Y • Retail & SME: Mid Corp.: Corporate Mix improved to 54:12:34 from 51:11:38 in Q1FY23 • Retail and SME advances cross INR 1,00,000 Crs and Home loans cross INR 10,000 Crs • CASA ratio at 31.0% vs. 30.8% in Q1FY23, avg. CASA improved by 32.4% Y-o-Y ▪ Improving Asset Quality: NNPA ratio below 4% for the first time since Sep-19 • GNPA ratio at 12.9% vs. 15.0% in Q2FY22 and 13.4% in Q1FY23 • NNPA ratio at 3.6% vs. 5.5% in Q2FY22 and 4.2% in Q1FY23 • Slippages lower at INR 896 Crs vs. INR 1,783 Crs in Q2FY22 and INR 1,072 Crs in Q1FY23 • Resolution Momentum continues with Total Recoveries & Upgrades for Q2FY23 at INR 1,586 Crs– well on track to achieve the FY23 guidance of INR 5,000 Crs ▪ The Board & Shareholders approved a capital raise1 of nearly INR 8,900 Crs via pref. issue to two Global Private Equity Investors- Carlyle and Advent International ▪ The Board approved JC Flowers ARC as winner of Swiss Challenge process; expected closure in Q3FY23– transaction set to be largest sale of stressed assets deal in India ▪ Received RBI approval for appointments2 of R Gandhi as Non – Executive (Part-time) Chairman and Prashant Kumar as MD & CEO for a period of 3 years each ▪ Credit Ratings Upgrades by CRISIL, ICRA, India Ratings and CARE with short term rating highest at A1+ and long-term rating at A- with a Positive Outlook by most agencies3 ▪ Launched a dedicated Digital Banking Unit in Naharlagun (Itanagar), Arunachal Pradesh, which offers Bank’s digital services to customers |
1 Subject to regulatory approvals- expected in Q3FY23; 2 Subject to Shareholders’ approval; 3 Excluding India Ratings which has a Stable Outlook
Commenting on the results and financial performance, Prashant Kumar, MD & CEO, YES
BANK said, “Q2FY23 has been a significantly important quarter in this new journey of the
Bank. Two marquee global Private Equity players namely Carlyle and Advent International
have reposed their faith in the franchise committing nearly INR 8,900 Crs investment into
Equity/ Warrants of the Bank. Moreover, the Bank is close to completion of successful
transfer of its identified pool of stressed Assets to the JC Flowers ARC. On the Operational
front, the business momentum continues with Operating Profits at nearly INR 800 Crs which
is highest in the last 7 quarters, and consistently improving Asset Quality with NNPA now
below 4% for the first time since Sep-19. As the Banking Industry navigates the rising and
volatile interest rate environment, wherein Deposit Generation along with Balance Sheet
growth is emerging as a priority, we are geared up with a superior platform and expanded
workforce to successfully execute the next growth phase of the Bank.”
| Financial Highlights Profit and Loss ▪ NII at INR 1,991 Crs for Q2FY23 grew 32% Y-o-Y and 8% Q-o-Q ▪ NIM for Q1FY23 at 2.6% up nearly 40 bps Y-o-Y and 20 bps Q-o-Q ▪ Non-Interest Income for Q2FY23 at INR 920 Crs up 18% Y-o-Y and Q-o-Q ▪ Operating Expenses at INR 2,121 Crs for Q2FY23, up 32% Y-o-Y and 4% Q-o-Q largely led by increase in IT Spends, employee increments and welfare- including Insurance ▪ Cost to Income ratio improved to 72.8% from 77.6% in Q1FY23 ▪ Operating profit stands at INR 790 Crs in Q2FY23, up 17% Y-o-Y and 34% Q-o-Q this is the highest Operating Profits in the last 7 quarters ▪ Provisions (Non-Tax) for Q2FY23 at INR 583 Crs, up 54% Y-o-Y ▪ Net Profit for Q2FY23 at INR 153 Crs Balance Sheet ▪ Net Advances at INR 192,300 Crs, up 11% Y-o-Y & 3% Q-o-Q • Sustained improvement in Granularity – Retail & SME: Mid Corporate: Corporate mix at 54:12:34 vs. 51:11:38 in Q1FY23 and 44:10:46 in Q2FY22 • Retail Advances mix at 41% vs 38% in Q1FY23 and 32% in Q2FY22 • New Sanctions / Disbursements of INR 24,149 Crs in Q2FY23 o Gross Retail Assets Disbursements of INR 12,563 Cr o Rural Disbursements of INR 736 Crs o SME Disbursements1 of INR 6,008 Crs o Wholesale Banking Disbursements of nearly INR 4,842 Crs ▪ Total Balance Sheet grew 16% Y-o-Y and 5% Q-o-Q to INR 334,496 Crs ▪ Total Deposits at INR 200,021 Crs, up 13% Y-o-Y and 4% Q-o-Q • CASA ratio at 31.0% up 160 bps Y-o-Y and 20 bps Q-o-Q • CASA + Retail TDs at 62%2 of Total Deposits • 3.31 Lacs CASA Accounts opened in Q2FY23 vs. 3.0 Lacs in Q1FY23 ▪ Average LCR during the quarter healthy at 116.1%3 ▪ CET 14ratio at 11.7%: Total CRAR4 at 17.3%; RWA to Total Assets at 71% vs. 73% in Q1FY23 and 79% in Q2FY22 ▪ Investments at INR 57,973 Crs up 3% Y-o-Y ▪ Borrowings at INR 76,495 Crs up 20% Y-o-Y |
| Asset Quality |
| ▪ Sustained Improvement in NPA Ratios– NNPA below 4% • GNPA ratio at 12.9% vs 13.4% in Q1FY23 and 15.0% in Q2FY22 • NNPA ratio at 3.6% vs. 4.2% in Q1FY23 and 5.5% in Q2FY22 ▪ Slippages lower Y-o-Y and Q-o-Q • Q2FY23 at INR 896 Crs vs INR 1,072 Crs in Q1FY23 and INR 1,783 Crs in Q2FY22 ▪ 31-90 Days Overdue Book trending lower: nearly INR 3,000 Crs decline Q-o-Q • 31-60 days book at INR 1,129 Crs vs. INR 905 in Q1FY23 • 61-90 days book at INR 3,380 Crs lower vs. INR 6,543 Crs in Q1FY23 ▪ Resolution Momentum continues with Total Recoveries & Upgrades for Q2FY23 at INR 1,586 Crs– well on track to achieve the FY23 guidance of INR 5,000 Crs |
| Other Highlights/ Achievements |
| ▪ Nearly every 3rd digital transaction undertaken in India is powered by YES Bank ▪ Ranked 1 in NEFT Outward Volumes and UPI market share ▪ First Indian Bank to publish its 10th Sustainability Report marking the Bank’s decade-long leadership in ESG performance and sustainability reporting ▪ Partnered with Govt. of India to develop logistic use cases on Unified Logistics Interface Platform (ULIP) ▪ Launched a dedicated Digital Banking Unit in Naharlagun (Itanagar), Arunachal Pradesh, which will bring digital services to customers |
YES BANK’s Analyst conference call, scheduled on October 22, 2022 at 4:00 PM IST, can be heard at following link, post 10 PM: https://www.yesbank.in/about-us/investors-relation/financial-information/financialresults
ABOUT YES BANK
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.
YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES, a wholly owned subsidiary of the Bank. Headquartered in Mumbai, it has a pan-India presence including an IBU at GIFT City, and a Representative Office in Abu Dhabi.
For more information, please visit the Bank’s website at http://www.yesbank.in/
Financial Highlights from Q2FY23 Results
| Profit & Loss Statement Highlights | |||||
| (INR Crs) | Q2FY23 | Q1FY23 | Growth % | Q2FY22 | Growth % |
| Net Interest Income | 1,991 | 1,850 | 7.6% | 1,512 | 31.7% |
| Non-Interest Income | 920 | 781 | 17.7% | 778 | 18.2% |
| Total Net Income | 2,911 | 2,632 | 10.6% | 2,290 | 27.1% |
| Operating Profit / (Loss) | 790 | 590 | 34.0% | 678 | 16.6% |
| Provisions | 583 | 175 | 233.6% | 377 | 54.4% |
| Net Profit / (Loss) | 153 | 311 | -50.8% | 225 | -32.2% |
| Basic EPS (INR) | 0.06 | 0.1 | -50.8% | 0.1 | -32.3% |
| Key P & L Ratios | |||||
| Return on Assets1 | 0.2% | 0.4% | 0.3% | ||
| Return on Equity1 | 1.8% | 3.7% | 2.7% | ||
| NIM | 2.6% | 2.4% | 2.2% | ||
| Cost to Income | 72.8% | 77.6% | 70.4% | ||
| Non-interest Inc. to Total Income | 31.6% | 29.7% | 34.0% |
| Balance Sheet Highlights | |||||
| (INR Crs) | 30-Sep-22 | 30-Jun-22 | Growth | 30-Sep-21 | Growth |
| Advances | 192,300 | 186,367 | 3.2% | 172,839 | 11.3% |
| Deposits | 200,021 | 193,241 | 3.5% | 176,672 | 13.2% |
| Shareholder’s Funds | 34,427 | 34,149 | 0.8% | 33,608 | 2.4% |
| Total Capital Funds | 41,209 | 40,926 | 0.7% | 40,294 | 2.3% |
| Total Assets | 334,496 | 318,475 | 5.0% | 288,523 | 15.9% |
| Key Balance Sheet Ratios | |||||
| CRAR2 | 17.3% | 17.7% | 17.6% | ||
| CET I2 | 11.7% | 11.9% | 11.5% | ||
| Book Value per share (INR) | 13.7 | 13.6 | 13.4 | ||
| Gross NPA (%) | 12.9% | 13.4% | 15.0% | ||
| Net NPA (%) | 3.6% | 4.2% | 5.5% | ||
| NPA PCR3 | 84.0% | 82.3% | 78.9% | ||
| Std. Restructured Advances (Gross)4 | 5,928 | 6,453 | 6,184 | ||
| Security Receipts (Net) | 315 | 622 | 1,417 | ||
| CASA Ratio | 31.0% | 30.8% | 29.4% | ||
| Average LCR | 116.1% | 118.8% | 117.6% |
1 Annualized
2Includes Profits
3 Provision Coverage Ratio including Technical Write Offs
4 Already implemented as of respective date (across various categories including Covid related)
