Yes Bank Q2 Update: Loans And Advances Up Nearly 7% To Rs 2.5 Lakh Crore

Yes Bank Ltd.'s loans and net advances rose 3.9% sequentially to Rs 2.5 lakh crore in July-September, according to provisional numbers disclosed by the lender on Friday. On a year-on-year basis, it advanced by 6.5%. The bank's total deposits were also up, as they rose 7.6% sequentially and 7.1% on-year to Rs 2.97 lakh crore.

On the other hand, the current account and savings account (CASA) rose 11% sequentially to Rs 1 lakh crore. On a year-on-year basis, CASA rose 13.2% in quarter-ended September. Credit-to-deposit ratio for the September quarter contracted to 84.4% in comparison to 87.4% in the quarter ended in June.

CASA ratio — the proportion of deposits that come from low-cost current and savings accounts — expanded from 32.8% to 33.8% sequentially. A higher CASA ratio indicates a lower cost of funds, since lenders do not usually give any interest on current account deposits and the interest on saving accounts is low.

Yes Bank Q1 Performance

Stable asset quality helped Yes Bank report a sizeable increase in operating profit in the first quarter. The bank reported a profit after tax of Rs 801 crore, up 60% year on year and 9% sequentially.

Net interest income, or core income, of the private sector lender rose 6% on year to Rs 2,372 crore. Operating profit surged 53% on year to Rs 1,358 crore. Net interest margin of the bank remained stable at 2.5% on quarter.

Provisions and contingencies against bad loans rose to Rs 284 crore as against Rs 212 crore a year ago.

Asset quality of the bank remained stable, with gross non-performing assets ratio flat on quarter at 1.6% and net NPA ratio also flat at 0.3% at the end of June.

Overall, gross slippages of the private sector bank rose to Rs 1,458 crore as against Rs 1,223 crore in the prior quarter.

Yes Bank Stock Price Today

The business update was shared after market hours. The stock settled 0.41% lower at Rs 21.85 apiece on the NSE, compared to a 0.23% advance in the benchmark Nifty 50. The shares earlier during the day rose as much as 0.97% to Rs 21.97 per share.

Yes Bank shares have fallen 0.05% in the last 12 months and risen 11.54% year-to-date.

Out of 11 analysts tracking the company, two recommend a 'hold' and nine suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 17.70 implies a downside of 19%.