|
Yes bank posted 60%, on yoy basis, decline in the net profit to Rs 45.44 crore for the quarter ended June 2020 (Q1FY2021). The bank has exhibited decline in net interest income and non-interest income, while the provisions remained elevated.
However, the bank has improved Net Interest Margin (NIM) and maintained stable asset quality in Q1FY2021. The cost-to-income ratio has improved on sequential basis in Q1FY2021. Net Interest Margin (NIM) was higher at 3.0% in Q1FY2021 compared with 2.8% in the corresponding quarter last year.
On business front, the business volume of the bank declined sharply with steep decline in loan book as well as deposits end June 2020.
The Current Account-Saving Account (CASA) deposits ratio of the bank eased to 25.8% at end June 2020 from 26.6% a quarter ago and 30.2% a year ago.
Bank has continued to expand branch network at healthy pace touched the branch network level of 1139 branches along with 1425 ATMs at end June 2020.
Asset quality stable: Bank has maintained stable asset quality in Q1FY2021.
GNPA ratio increased 50 bps qoq to 17.30%, while NNPA ratio declined 7 bps qoq to 4.96% at end June 2020.
Fresh slippages of advances stood at Rs 45 crore, while bank has recorded recoveries and upgradations of Rs 160 crore and conducted write-offs of Rs 60 crore in Q1FY2021.
Restructured assets book was flat on sequential basis at Rs 190 crore (0.10% of the advances) at end June 2020, while declined from Rs 202 crore (0.08% ) a year ago.
The securities receipts on the banks book stood at 0.82% at end June 2020.
The bank has maintained monthly average Liquidity Coverage ratio of 114.1%.
| Asset Quality Indicators: Yes Bank |
|
Jun-20 |
Mar-20 |
Dec-19 |
Sep-19 |
Jun-19 |
Variation |
| QoQ |
YoY |
| Gross NPA (Rs Crore) |
32702.70 |
32877.59 |
40709.20 |
17134.41 |
12092.10 |
-1 |
170 |
| Net NPA (Rs Crore) |
5157.50 |
8623.78 |
11114.72 |
9757.20 |
6883.27 |
-40 |
-25 |
| % Gross NPA |
17.30 |
16.80 |
18.87 |
7.39 |
5.01 |
50 |
1229 |
| % Net NPA |
4.96 |
5.03 |
5.97 |
4.35 |
2.91 |
-7 |
205 |
| % PCR |
75.06 |
73.77 |
72.70 |
43.10 |
43.10 |
129 |
3196 |
| % CRAR - Basel III |
8.60 |
8.50 |
4.10 |
16.30 |
15.70 |
10 |
-710 |
| % CRAR - Tier I - Basel III |
6.60 |
6.50 |
2.10 |
11.50 |
10.70 |
10 |
-410 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business Highlights:
Business volume dips: The business of the bank dipped 39% to Rs 281870 crore at end June 2020. Deposits plunged 48% to Rs 117360 crore, while advances declined 30% to Rs 164510 crore at end June 2020. Credit-deposit ratio of the bank declined to 140.2% at end June 2020 from 162.7% a quarter ago and jumped from 104.6% a year ago.
CASA ratio eases: The CASA deposits declined 55% to Rs 30326 crore at end June 2020. CASA ratio further eased to 25.8% at end June 2020 up from 26.6% a quarter ago and 30.2% a year ago.
Margins improve: Bank has improved the net interest margin (NIM) to 3.0% in Q1FY2021 from 1.9% in previous quarter and 2.8% in the corresponding quarter last year. Yield on advances declined 60 bps yoy 9.4%, while cost of funds dipped 20 bps yoy to 6.6% in Q1FY2021.
Network expansion: Bank has added 4 new branches during the quarter taking the total branch count to 1139 branches at end June 2020. ATMs count of the bank increased to 1425 ATMs at end June 2020 from 1423 ATMs a quarter ago.
Total headcount of the bank declined to 21721 employees at end June 2020 from 22973 a quarter ago and 21745 at end June 2019.
Book value per share has improved to Rs 14.6 per share at end June 2020. Adjusted Book Value (adjusting for NNPA and 10% of restructured assets) stood at Rs 12.6 per share.
Quarterly Performance:
NII decline on dip in loan book: For the quarter ended June 2020, the bank has reported 16% decline in NII at Rs 1908.14 crore. The interest income dipped 30% to Rs 5486.08 crore, while interest expenses slipped 35% to Rs 3577.94 crore.
Non-interest income declines: The non-interest income of the bank dipped 51% on yoy basis to Rs 620.66 crore in Q1FY2021. Corporate Trade & Cash Management skidded 47% yoy to Rs 105 crore, while Forex, Debt Capital Markets & Securities fell 38% to Rs 407 crore. The Retail Banking Fees fell 65% to Rs 121 crore in Q1FY2021.
Net total income of the bank declined 29% to Rs 2528.80 crore in Q1FY2021.
Expense ratio improves on sequential basis: The operating expenses of bank declined 13% to Rs 1381.95 crore driven by 21% dip in other operating expenses to Rs 738.29 crore in quarter ended June 2020. The employee cost fell 3% to Rs 643.66 crore. The expense ratio eased 3964 bps qoq, but rose 978 bps yoy to 54.6% in Q1FY2021.
The operating profit of the bank declined 41% to Rs 1146.85 crore in quarter ended June 2020.
Provisions decline: Provisions and contingencies dipped 39% to Rs 1086.61 crore for Q1FY2021, boosting growth in the profit before tax.
Profit before tax fell 66% to Rs 60.24 crore in Q1FY2021. The effective tax rate declined by 1042 bps yoy to 24.6%. Net Profit dipped 60% to Rs 45.44 crore in quarter ended June 2020.
Financial Performance FY2020:
For the year ended March 2020 (FY2020), the bank has posted net loss of Rs 16418.02 crore. The net interest income dipped 31% to Rs 6805.24 crore, while non-interest income fell 25% to Rs 3441.49 crore in FY2020. The expense ratio jumped 2217 bps to 65.7% in FY2020 compared to 43.5% in FY2019. The operating expenses increased 7% to Rs 6729.21 crore, while provision and contingencies jumped 467% to Rs 32758.43 crore. The pre-tax loss came in at Rs 29240.91 crore in FY2020. The bank has recognized post tax income of Rs 6296.94 crore write of Tier I bonds, helping to reduce pre-tax loss to Rs 22943.97 crore, while the bank has also written back tax provisions of Rs 6525.95 crore, helping to reduce net loss to Rs 16418.02 crore in FY2020.
|