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Yes bank has reported the net profit of Rs 129.37 crore for the quarter ended September 2020 (Q1FY2021). The better Net Interest Margin (NIM), lower cost-to-income ratio and tax rate has supported the earnings of the company in Q2FY2021. However, the dip in non-interest income and elevated provisioning impacted the earnings performance in Q1FY2021.
Net Interest Margin (NIM) was higher at 3.1% in Q2FY2021 compared with 2.7% in the corresponding quarter last year.
The loan book of the bank has declined 26% at end September 2020. The Current Account-Saving Account (CASA) deposits ratio of the gas eased to 24.8% end September 2020 from 25.8% a quarter ago and 30.8% a year ago.
Bank has branch network of 1106 branches along with 1402 ATMs at end September 2020.
Asset quality improves: Bank has improved asset quality with reduction in GNPA and NNPA ratios, while banks restructured advance book rose slightly in Q2FY2021.
GNPA ratio declined 40 bps qoq to 16.90%, while NNPA ratio fell 25 bps qoq to 4.71% at end September 2020
Fresh slippages of advances stood at Rs 101 crore, while bank has recorded recoveries and upgradations of Rs 350 crore and conducted write-offs of Rs 109 crore in Q2FY2021.
Restructured assets book rose to Rs 264 crore (0.14% of the advances) end September 2020, up from Rs 221 crore (0.10%) a year ago.
The securities receipts on the banks book eased to 0.78% at end September 2020.
| Asset Quality Indicators: Yes Bank |
|
Sep-20 |
Jun-20 |
Mar-20 |
Dec-19 |
Sep-19 |
Variation |
| QoQ |
YTD |
YoY |
| Gross NPA (Rs Crore) |
32344.36 |
32702.70 |
32877.59 |
40709.20 |
17134.41 |
-1 |
-2 |
89 |
| Net NPA (Rs Crore) |
7868.13 |
8157.50 |
8623.78 |
11114.72 |
9757.20 |
-4 |
-9 |
-19 |
| % Gross NPA |
16.90 |
17.30 |
16.80 |
18.87 |
7.39 |
-40 |
10 |
951 |
| % Net NPA |
4.71 |
4.96 |
5.03 |
5.97 |
4.35 |
-25 |
-32 |
36 |
| % PCR |
75.70 |
75.06 |
73.77 |
72.70 |
43.10 |
64 |
193 |
3260 |
| % CRAR - Basel III |
19.90 |
8.60 |
8.50 |
4.10 |
16.30 |
1130 |
1140 |
360 |
| % CRAR - Tier I - Basel III |
13.60 |
6.60 |
6.50 |
2.10 |
11.50 |
700 |
710 |
210 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business Highlights:
Business volume jumps on sequential basis: The business of the bank declined 30% yoy, while jumped 7% to Rs 302738 crore end September 2020. Deposits dipped 35% yoyo, but surged 16% qoq to Rs 135815 crore. The advances slipped 26% yoy, while rose 1% to Rs 166923 crore at end September 2020.
Credit-deposit ratio of the bank declined to 122.9% at end September 2020 from 140.2% a quarter ago, while remained above 107.2% a year ago.
Casa ratio eases: The CASA deposits dipped 48%, while increased 11% qoq to Rs 33713 crore at end September 2020. CASA ratio eased to 24.8% at end September 2020 up from 25.8% a quarter ago and 30.8% a year ago.
Margins improve: Bank has maintained the net interest margin (NIM) steady at 3.1% in Q2FY2021 from previous quarter, while improved from 2.7% in the corresponding quarter last year. Yield on advances eased 40 bps yoy 9.4%, while cost of funds dipped 30 bps yoy to 6.4% in Q2FY2021.
Network distribution: Bank has reduced 33 new branches during the quarter taking the total branch count to 1106 branches at end September 2020. ATMs count of the bank declined to 1402 ATMs at end September 2020 from 1425 ATMs a quarter ago. Total headcount of the bank moderated to 21374 employees at end September 2020 from 21721 a quarter ago and 24211 at end September 2019
Book value per share was at Rs 14.7 per share and adjusted Book Value (adjusting for NNPA and 10% of restructured assets) stood at Rs 11.5 per share end September 2020.
Quarterly Performance:
NII up 3% qoq: For the quarter ended September 2020, the bank has reported 10% yoy decline in NII at Rs 1973.37 crore. However, NII has increased 3qoq basis with rise in NIM to 3.1% in Q2FY2021 from 2.7% in Q2FY2020.
The interest income declined 29% to Rs 5245.39 crore, while interest expenses dipped 37% to Rs 3272.02 crore. The yield on advances declined 40 bps yoy to 9.4%, while cost of funds dipped 30 bps yoy to 6.4% in Q2FY2021.
Non-interest income dips: The non-interest income of the bank declined 25% on yoy basis to Rs 706.75 crore in Q2FY2021. Corporate trade & cash management fell 14% yoy to Rs 142 crore, while forex, debt capital markets & securities dipped 27% to Rs 280 crore and retail banking fees jumped 22% to Rs 297 crore in Q2FY2021. The corporate banking fees (financial advisory fees) segment witnessed losses of Rs 25 crore
Net total income of the bank declined 14% to Rs 2680.12 crore in Q2FY2021.
Expense ratio improves: The operating expenses of bank have declined 21% to Rs 1320.10 crore driven by 30% dip in other operating expenses to Rs 708.10 crore in quarter ended September 2020. The employee cost also fell 7% to Rs 612.00 crore. The expense ratio eased 539 bps qoq and 418 bps yoy to 49.3% in Q2FY2021.
The operating profit of the bank declined 7% to Rs 1360.02 crore in quarter ended September 2020.
Provisions decline: Provisions and contingencies dipped 11% to Rs 1187.33 crore for Q2FY2021. The NPA provisions were lower at Rs 49 crore, while bank has written back investment provisions of Rs 16 crore. However, the standard asset provisions were higher at Rs 1048 crore in Q2FY2021 in addition to Rs 641 crore in Q1FY2021.
With the decline in provisions, PBT increased 41% to Rs 172.69 crore in Q2FY2021. The effective tax rate was 25.1%. Net Profit came in at Rs 129.37 crore in quarter ended September 2020.
Financial Performance H1FY2021:
For the six months ended September 2020 (H1FY2021), the bank has posted net profit of Rs 174.81 crore. The net interest income declined 13% to Rs 3881.51 crore, while non-interest income dipped 40% to Rs 1327.42 crore in H1FY2021. The expense ratio increased 299 bps to 51.9% in H1FY2021 compared to 48.9% in H1FY2020. The operating expenses declined 17% to Rs 2702.05 crore, while provision and contingencies fell 27% to Rs 2273.95 crore. The profit before tax eased 22% to Rs 232.93 crore in H1FY2021. An effective tax rate has declined to 25.0% in H1FY2021 from 263.7% in H1FY2020. The net profit came in at Rs 174.81 crore in H1FY2021.
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