Yes Bank Q3: Net Profit Jumps On Stable Asset Quality, Lower Provisions

The net interest income (NII) of the lender increased over 2 per cent to touch Rs 2,016.8 crore in the reviewing quarter, against Rs 1,970.6 crore in Q3FY22

Private lender Yes Bank Ltd reported an increase in its net profit in the third quarter results on a year-on-year (YoY) basis. The net profit of the bank stood at Rs 231 crore in the quarter ended December 2023 in the 2023-24 fiscal year, against Rs 51 crore logged in the corresponding period a year earlier. 

The bank credited the growth in profitability to the reduction in provisions during the reviewing period. The provisions for the December quarter in FY24 stood at Rs 554.7 crore, against Rs 844.7 crore registered in the same quarter a year earlier, reported CNBC TV18. However, provisions remained higher at Rs 500 crore during the preceding quarter in the ongoing fiscal year. 

The other income of the bank grew to Rs 1,254 crore in Q3FY24, as compared to Rs 1,112 crore, on a YoY basis. The net interest income (NII) of the lender increased over 2 per cent to touch Rs 2,016.8 crore in the reviewing quarter, against Rs 1,970.6 crore in Q3FY22. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

The asset quality of the bank remained stable with the gross non-performing assets (NPA) remaining unchanged at 2 per cent from the same quarter a year earlier. However, the net NPA improved slightly to 0.9 per cent in the reporting quarter, against 1 per cent logged in the corresponding quarter a year ago. NPAs are loans or advances issued by the bank that are subject to late repayment or unlikely to be repaid by the borrower in full.

Regarding the outlook on the bank's stock movement, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said, “Yes Bank share has picked up quite well in the last 3 months from ₹16 zone and has maintained an uptrend with series of higher low formation on the daily chart with currently consolidating having the near-term support at ₹23.70 levels. On the upside, a decisive breach above ₹25.70 to ₹26 zone is much needed to confirm a breakout and thereafter can anticipate further rise with next targets of ₹28.50 and ₹31 levels visible," reported Mint.