Private banks including Yes Bank have been consistent performers in the fourth quarter as seen in the account data for the financial year 2023-24. In the Q4FY2014, the bank’s net profit surged 123% to INR. As we compare the 2019-2020, it is evident that the attention that has been given to education infrastructure was significantly lower than the previous year. So, the allocation of Rs. On the other hand, the budget is quite fragmented: 820 crore INR for the first half of the year, whereas last year’s budget amounted to 302 crores in the same period. It was this rock-solid growth in net income that was high-speeded by the vigorous growth of loans, the improvement of asset quality and the lower loan loss provisions.
Let’s take a deeper look at Yes Bank’s Q4 performance across key parameters:
Yes Bank now sees loan expansion as a key priority having gone through a tough way in the last year as a result of the economic turbulence linked to the pandemic. Its effectiveness got further underlined as the advances exceeded all expectations growing by 13.8% year-on-year to Rs. 2.27 lakh loan was deposited in Q4. Indicates the key areas of contribution: SME, mid-corporate, and corporate loan segments had outstanding growth. As economical activities increase, there shall be an upsurge in credit demands encompassing businesses in different sectors of national economies. The event resulted in Yes Bank capitalizing on the loss and expanding its lending operation.
On the other hand the main reason for Yes Bank pro is that the bank has the asset quality that has been enhancing over the last few quarters. The annual gross NPA ratio dropped to 1.7% from the previous year-ago level of 2.2% during the last quarter. While the other two components remained unchanged, net NPA showed a significant decline of 0.80% to 0.6%. This indicates that the quality of the bank’s asset level is being maintained as stress assets are being resolved and the new slip for interference is being controlled. Lower NPAs help out with the reduction of the provisioning needs and thus increase the net incomes of the banks.
Total deposits for Yes Bank grew at a brisk 22.5% year-on-year to Rs. 2.6 lakh crore in Q4. This was much higher than the loan book expansion, underlining the bank’s success in raising low-cost customer funds. The current account savings account ratio also held steady at around 31%. Stable, low-cost deposits are crucial for banks as they pursue lending opportunities in a rising interest rate environment.
Net interest margin, a measure of profitability, was flat quarter-on-quarter at 2.4% despite rate hikes. This shows Yes Bank’s ability to manage margins even as borrowing costs rise. Provisions fell 23.7% to Rs. 470 crore as asset quality strengthened. Both lower provisions and robust loan growth powered the bank’s stellar 123% surge in net profit.
Overall, Yes Bank’s Q4 results indicate that it is successfully implementing its business strategies. With improving financials and strong growth momentum across key parameters, the private lender seems to be firmly back on the recovery track. Investors will be keeping a close watch on how it sustains this earnings momentum over the coming quarters.
