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Yes Bank Q1 takeaways: Key matrix from the 'quarter of consolidation'

The private lender had reported a Rs 1,260 crore profit for the same quarter last year.

ETMarkets.com|
Updated: Jul 18, 2019, 09.22 AM IST
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Yes Bank Q1 net profit slumps 91% YoY to Rs 114 crore
Yes Bank Q1 net profit slumps 91% YoY to Rs 114 crore
Private lender Yes Bank on Wednesday reported a 91 per cent plunge in June quarter net profit at Rs 113.80 crore thanks to a one-off impact from mark-to-market provisions of Rs 1,109 crore.

The profit number fell far short of consensus analyst projection of Rs 164 crore. The private lender had reported a Rs 1,260 crore profit for the same quarter last year. The bank called it a 'quarter of consolidation' and demonstrated resilience in revenues and asset quality.

Here is a deep dive into the key financials to see on which the bank has been able to perform and where it has not.

· Return to profitability

The bank’s net interest income grew 2.8 per cent YoY to Rs 2,281 crore in Q1FY20, despite absorbing a Rs 223 crore impact due to interest reversals on account of slippages during the quarter. Pre-provisioning operating profit grew 48 per cent sequentially to Rs 1,959 crore. The bank managed to post net profit of Rs 114 crore for Q1 despite absorbing one-off impact from MTM provisions of Rs 1,109 crore

· Key growth matrix

Advances growth remained calibrated, but the bank showed solid momentum on the retail side. Advances grew 10.1 per cent Year on Year to Rs 2,36,300 crore . Retail advances grew 43.3 per cent YoY and 7.2 per cent sequentially to 18.3 per cent of total advances from 14 per cent last year. Retail advances growth accounted for 60.5 per cent of incremental YoY growth in advances

· Asset quality

The private lender showed significant resilience in asset quality. Credit cost stood at 32 bps during Q1FY20, while the bank maintained the credit cost guidance of up to 125 bps for FY20. It managed to maintain a provision coverage ratio of 43.1 per cent

· Funding & liquidity

The bank managed to grow deposits by 5.9 per cent YoY to Rs 2,25,902 crore. Retail term deposits grew 37.7 per cent YoY and 8.2 per cent sequentially and now account for 28 per cent of total deposits. CASA ratio stood at 30.2 per cent· Daily average LCR sequentially improved to 117.3 per cent from 110.9 per cent. LCR as of June 30, 2019 stood at 132.6 per cent. Total CRAR stood at 15.7 per cent with Tier-I ratio at 10.7 per cent.
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