Yes Bank Q2 Gross NPA drops to 2% from 13.4% a year ago; stock gains

Shares of Yes Bank jumped nearly 2 percent in trade on October 4, post reporting a 17.2 percent growth in Q2 deposits.

At 9:51 am the Yes Bank stock was trading 1.67 percent higher at Rs 17.50 on NSE.

Yes Bank, the private sector lender has reported deposits growth of 17.2 percent YoY, which is up 6.8 percent QoQ to Rs 2.34 lakh crore, while its advances increased by 9.5 percent YoY & 5.2 percent QoQ to Rs 2.10 lakh crore as detailed in the filing with BSE dated October 3.

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The private sector lender Yes Bank on July 22 reported a 10.26 percent year-on-year (YoY) rise in net profit to Rs 342.5 crore in the first quarter of the current financial year, up from Rs 314.3 crore in the year-ago period.

The bank’s asset quality saw a healthy improvement for the quarter. The lender’s gross non-performing assets (GNPAs) stood at 2 percent compared with 13.4 percent in the corresponding quarter of the previous fiscal. The net non-performing assets (NNPA) for the quarter stood at 1 percent compared with 4.2 percent in the year-ago quarter.

The lender’s net interest margin (NIM) for the June quarter stood at 2.5 percent up nearly 10 basis points YoY, while its non-interest income (NII) was at Rs 1,141 crore, up 54 percent YoY and 13.7 percent QoQ. The bank’s gross slippages for Q1FY24 were reported at Rs 1,430 crore compared to Rs 1,072 crore in the same period in the last financial year, and Rs 1,196 crore in the fourth quarter of FY23.

Total deposits for the quarter stood at Rs 219,369 crore, up 13.5 percent YoY and 0.9 percent QoQ. The bank’s CASA ratio (ratio of deposits in current, and saving accounts to total deposits) was at 29.4 percent compared to 30.8 percent in Q1FY23 and Q4FY23. The lender opened 3,55,000 new CASA accounts in Q1FY24. Its retail and small business deposits (gross LCR definition) grew 17.9 percent YoY.

Stock Performance

Yes Bank stock has given a return of 12.46 percent over the last six months. The benchmark Bank Nifty index has given a return of 8.29 percent over the same duration.

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