YES Bank's Shares Surge by 9% as Profits Soar 123% and Asset Quality Shows Improvement

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Disclaimer: The following information is for educational and informational purposes only. It does not constitute financial advice, and readers should conduct their own research or consult with a qualified professional before making any investment decisions.

Shares of YES Bank surged by nearly 9% to reach an intraday high of Rs 28.50 per share on Monday following the announcement of robust financial results for the fourth quarter of fiscal year 2024 (Q4FY24).




The bank reported a remarkable increase in profit, which soared over 123% to Rs 452 crore in Q4FY24, compared to Rs 202.43 crore reported in Q4FY23. Total income rose by 25% annually to Rs 9,016 crore, while profit before tax (PBT) zoomed by over 59% to Rs 431.6 crore in the March quarter, from Rs 271 crore in the corresponding quarter last year.

YES Bank's net interest income (NII) stood at Rs 2,153 crore, marking a modest increase of 2.3% year-on-year (YoY) compared to Rs 2,105 crore. However, the net interest margin (NIM) fell to 2.4% in Q4 FY24, down from 2.8% registered in Q4FY23.

On the asset quality front, the bank showcased improvement with gross non-performing assets (NPAs) reducing to Rs 3,982.56 crore as on 31 March 2024, compared to Rs 4,394.57 crore as on 31 March 2023. The gross NPA ratio reduced to 1.7% in Q4FY24, from 2.2% in Q4FY23, while the net NPA ratio marginally improved to 0.6%.

Provisions (other than tax) and contingencies dropped by 23.75% YoY to Rs 471 crore in Q4 FY24.

Prashant Kumar, managing director & CEO of YES Bank, highlighted the bank's progress, stating, “This quarter demonstrates a significant step in the RoA expansion journey, with Q4FY24 RoA expanding to 0.5 per cent." He further emphasized the bank's focus on strengthening asset quality metrics and expanding its liability franchise, including growth in deposits and CASA ratio.

Kumar also noted the bank's commitment to expanding its digital footprint and partnerships as part of its ongoing strategic initiatives.

In conclusion, YES Bank's strong financial performance in Q4FY24 reflects positive momentum and strategic initiatives aimed at enhancing profitability and strengthening its position in the banking sector.

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