Yes Bank Q3 Results Review - Higher Provisions Impacted Profitability: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.Yes Bank Ltd.’s Q3 FY23 was marked by two major events: fresh capital infusion of Rs 89 billion from Carlyle and Advent groups and completion of sale of stressed assets to J.C. Flower ARC. The bank concluded capital raise and received Rs 50.9 billion by way of equity investment while the balance Rs 9.5 billion came in terms of warrants. The sale of stressed assets to ARC led to an improvement in asset quality, with gross/net non-performing asset down at 2.02%/1.03% versus 12.89%/3.6% in Q2 FY23.The net profit declined by 81% YoY due to elevated provisions, which increased by 125% YoY. Advances growth was impacted by sell-down of assets and registered a growth of 1.2% QoQ (10.4% YoY). Deposits maintained good momentum, increasing by 6.8% QoQ (15.9% YoY). On the operational front, net interest margin declined by 10 bps QoQ, but adjusted for recovery on NPA in Q2 FY23, NIM was flat. The non-interest income grew by 55.8% YoY (24.3% QoQ), partially aided by receipt of funds from the sale of stressed assets to ARC. Operating expenses remained elevated on the back of branch expansion and technology investments. Yes Bank’s CET 1 ratio improved to 13% versus 11.7% on the back of equity capital infusion and ARC transaction. The management indicated that the bank is in process to appeal in Supreme Court against the recent High court order that quashed the write-off of additional tier 1 bonds (AT 1) issued by the bank..Click on the attachment to read the full report:.Yes Bank Q3 Results Review - Ageing-Related Provision Drags Earnings: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Yes Bank Q3 Results Review - Higher Provisions Impacted Profitability: Nirmal Bang

Asset quality sees marked improvement on the back of sale of stressed assets.

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