YES BANK’s Q3 FY23 results

Commenting on the results and financial performance, Mr. 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.

Financial Highlights
Profit and Loss
§  NII at INR 1,971 Crs 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 flat Q-o-Q§   Non-Interest Income for Q3FY23 at INR 1,143 Crs up 55.8% Y-o-Y and 24.3% Q-o-Q§  Operating Expenses at INR 2,200 Crs for Q3FY23, up 24.5% Y-o-Y and 3.7% Q-o-Q§  Cost to Income ratio improved to 70.7% from 72.8% in Q2FY23 – led by slower opex growth in comparison to Income growth§  Operating profit stands at INR 914 Crs in Q3FY23, up 25.0% Y-o-Y and 15.6% Q-o-Q- this is the highest Operating Profits in the last 8 quarters§  Provisions (Non-Tax) for Q3FY23 at INR 845 Crs, up 44.9% Q-o-Q§  Net Profit for Q3FY23 at INR 52 Crs
Balance Sheet
§  Net Advances at INR 194,573 Crs, up 10.4% Y-o-Y & 1.2% Q-o-Q•       Sustained improvement in Granularity – Retail & SME: Mid Corporate: Corporate mix at 58:13:29 vs. 54:12:34 in Q2FY23 and 47:11:43 in Q3FY22•       Retail Advances mix at 44% vs 41% in Q2FY23 and 34% in Q3FY22•       New Sanctions / Disbursements of INR 27,311 Crs in Q3FY23 o    Gross Retail Assets Disbursements of INR 12,667 Cro    Rural Disbursements of INR 806 Crso    SME Disbursements1 of INR 6,104 Crs o    Wholesale Banking Disbursements of nearly INR 7,724 Crs §  Total Balance Sheet grew 12.9% Y-o-Y and 2.8% Q-o-Q to INR 343,798 Crs§  Total Deposits at INR 213,608 Crs, up 15.9% Y-o-Y and 6.8% Q-o-Q•       CASA ratio at 29.9% up 31.0% in Q2FY23 and 30.4% in Q3FY23•       CASA + Retail TDs at 59.5%2 of Total Deposits•       3.40 Lakh CASA Accounts opened in Q3FY23 vs. 3.31 Lakh in Q2FY23§  Average LCR during the quarter healthy at 113.3%3§  CET 14 ratio at 13.0%: Total CRAR4 at 18.0%; RWA to Total Assets at 70.9% vs. 71.2% in Q2FY23 and 75.3% in Q3FY22 §  Investments at INR 68,382 Crs up 28.1% Y-o-Y and 18.0% Q-o-Q largely on account of the Security Receipts received in lieu of the ARC transactions§  Borrowings at INR 68,928 Crs lower by 4.1% Y-o-Y
Asset Quality
§   Sustained Improvement in NPA Ratios•       GNPA ratio at 2.0% vs 12.9% in Q2FY23 and 14.7% in Q3FY22 •       NNPA ratio at 1.0% vs. 3.6% in Q2FY23 and 5.3% in Q3FY22 §   Gross Slippages at INR 1,607 Crs. Recoveries & upgrades from fresh slippages have been ~INR 500 Crs during Q3, leading to Net Slippage of ~INR 1,100 Crs§   31-90 Days Overdue Book •       31-60 days book at INR 1,918 Crs vs. INR 1,129 in Q2FY23•       61-90 days book at INR 2,834 Crs lower vs. INR 3,380 Crs in Q2FY23§   Resolution Momentum continues with Total Recoveries & Upgrades for Q3FY23 at ~INR 1,270 Crs– well on track to achieve the FY23 guidance 
Other Highlights/ Achievements
§   Nearly every 3rd digital transaction undertaken in India is powered by YES Bank§   Achieved the highest score amongst Indian banks, in the S&P Global Corporate Sustainability Assessment (CSA) 2022§   Ranked 5th amongst 90 Retail & Specialized Banks in Emerging Markets, by Moody’s ESG Solutions§   Awarded an ‘A-’ rating by Carbon Disclosure Project (CDP) for 2022 Climate Change disclosures, making the Bank the highest rated Indian Bank for climate disclosures§   Selected amongst the first four pilot banks for Digital Rupee (e₹) – the Central Bank Digital Currency (CBDC) launched by RBI§   Awarded across categories – CMS, Payments & Collections, Trade Finance and Transaction Banking at Global Transaction Banking Awards 2022 conducted by The Digital Banker 

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