Yes Bank conducted a concall on 22 January 2023 to discuss the financial results for the quarter ended December 2022 and prospects of the bank. Prashant Kumar, MD&CEO of the bank addressed the call:

Highlights:

The bank had two important events during the quarter relating to capital raise and completion of ARC transaction.

The bank has completed capital raise of Rs 6040 crore of which equity infusion is Rs 5093 crore and warrant application us Rs 948 crore.

The bank has completed the largest assignment of stressed asset pool to JC flower ARC.

The bank has been selected for the digital currency pilot of the central bank.

Regarding the Bombay High Court order on AT1 bonds, the bank is in the process of filing an appeal with the Supreme Court.

The cost to Income ratio of the bank has declined to 70.7% from 72.8% in the prior quarter, while  the cost to asset ratio remained stable at 2.6%.

The aging related provision has mainly impacted the net profit of the bank.

Any delay in the potential recovery of the stressed asset pool would impact expected profitability.

On the loan growth front, the retail loan growth was strong at 43%, SME at 19% and mid corporate 34%, while the corporate loan book declined by 18% end December 2022 over December 2021.

The normalized credit growth is 12% and the bank expects credit growth to track deposit growth going forward.

The deposits have increased by 16% and 7% sequentially to Rs 2.13 lakh crore and CASA deposit ratio stood at 30% end December 2022.

The fresh slippages of loans stood at Rs 1610 crore, while the recoveries and upgradations stood at Rs 519 crore. The slippages from the restructured book stood at Rs 190 crore about 60% of the restructured loan book have come out of moratorium.

The ratio risk weighted assets to assets stands at 71% end December 2022.

The bank has added 300 employees in the quadrant December 2022.

The bank has been witnessing recoveries and upgradations of more than Rs 5000 crore for last 3 years and expects to repeat the recoveries and upgradations of Rs 5000 crore in FY2024.

The share of the EBLR linked loan book stands at 29% and MCLR is 23%. The bank has another 4 to 5% of floating rate loans and balance the fixed loan book also has a mix of 10 to 15% short term loans.