YES Bank Ltd.'s shares increased by as much as 9% during Monday's trading session after the private lender posted solid profits for the March quarter (Q4FY24), helped by one-time gains from tax refunds.
For the quarter ending in March 2024, YES Bank recorded a standalone net profit of Rs 452 crore, an increase of 123% year over year (YoY). In the same period last year (Q4FY23), the lender declared a net profit of Rs 202.43. YES Bank had a 20% YoY increase in interest income to Rs 7,447.17 crore.
The net interest income (NII) increased by 2% year over year to Rs 2,153 crore from Rs 2,105 crore in the same quarter of the previous fiscal year. An important measure of the lender's profitability, net interest margin (NIM), was constant sequentially (QoQ) at 2.4%. Operating profit at YES Bank increased 4.4% YoY from Rs 864 crore in Q4FY23 to Rs 902 crore in Q4FY23.
In Monday's trading session, YES Bank's shares jumped 8.98% to Rs 28.50 at the opening tick, demanding a market valuation of almost Rs 81,000 crore. YES Bank's stock ended the last trading session on Friday at Rs 26.15, up 0.73%.
The gross non-performing asset (NPA) of YES Bank decreased to 1.7% in the March quarter from 2.0% in the corresponding period of the previous year. The quarter's net non-performing asset (NPA) was 0.6% for the duration, a 0.90 percent improvement on a QoQ basis. The quarter's provisions dropped 23.7% year over year to Rs 470.80 crore.
"With Q4FY24 RoA growing to 0.5%, this quarter shows a major milestone in the RoA expansion trajectory. This is true even if the one-time profits from tax refunds, SR recoveries, and the ARC Sale were wisely used to improve the measures measuring asset quality, according to YES Bank's managing director and CEO, Prashant Kumar.
"Our liability franchise is still experiencing significant momentum, as seen by the rise of deposits, which for the first time in the previous eight quarters, has increased to above 20 percent YoY. Notably, our CASA ratio has increased to 30.9% despite the difficult climate we have faced this year. With important relationships, the bank continues to grow its digital footprint this quarter," he added.
