Yes Bank shares jump over 5% on robust Q4 FY24 earnings
Upstox
2 min read • Updated: April 29, 2024, 11:23 AM
Summary
Yes Bank’s net profit stood at ₹1,251 crore in FY24 against ₹717 crore in FY23, reflecting a 74% growth year-on-year (YoY). The bank benefitted from write-back on income tax and interest on income tax returns (ITRs). Still, the profits were limited by its inability to comply with the mandatory priority sector lending (PSL) requirements, its management said.
Shares of Yes Bank surged on Monday after the private lender reported a two-fold jump in its standalone profit at ₹452 crore in the fourth quarter of financial year 2023-24 (Q4 FY24). In the year-ago period, the bank had reported a profit of ₹202.4 crore.
The stock was trading at ₹27.5, up 5.1%, on the National Stock Exchange (NSE) at 11:12 am. Intraday, the scrip hit a high of ₹28.5. On the BSE, Yes bank was up 5% to ₹27.4.
For FY24, the private sector lender's net profit stood at ₹1,251 crore against ₹717 crore in FY23, reflecting a 74% growth.
Also Read: Yes Bank Q4 results: Net profit more than doubles YoY to ₹454 crore, NII up 2.3%
In Q4 FY24, the core net interest income grew 2.3% to ₹2,153 crore on the back of narrowing the net interest margin (NIM) to 2.4% from 2.8% in the year-ago period.
Managing Director and Chief Executive Officer (CEO) Prashant Kumar said the bank is planning to increase the overall loan growth to over 17% in FY25 and will target increasing the deposits by 18.5%.
On the asset quality front, the bank witnessed fresh slippages of ₹1,356 crore and attributed a third of them to unsecured lending products, which have been under the regulatory lens.
The gross non-performing assets ratio improved to 1.7% from the year-ago period's 2.2%.
On the one-time gains front, the bank had a ₹787 crore gain through the write-back on security receipts' provision and an income tax refund of ₹247 crore. However, it decided to step up the provision coverage ratio by ten percentage points and deployed the gains for upping the buffers.
This resulted in the overall provisions coming down to ₹470 crore from ₹617 crore in the year-ago period.
Kumar said the bank spends over ₹11,000 crore or about 10% of its overall operational costs on technology and will continue to spend between 10%-11% in the area.
The recently announced partnership with Paytm has taken up the overall UPI transactions it handles to 5 billion a month from the 3.8 billion earlier, Kumar said.
Yes Bank plans to open 30 branches in April-June, expanding its network to 1,234 branches.
With PTI inputs