Yes Bank Shares Fell Nearly 3% Despite 47% Jump In Net Profit, NIM Declines

Shares of Yes Bank were trading in the red territory at Rs 16.75 price level, down by nearly 3 per cent on the National Stock Exchange (NSE).
YES Bank
YES Bank

Yes Bank shares fell nearly 3 per cent on Monday after the bank reported a 47.4 per cent increase in its net profit to Rs 225.21 crore for the second quarter of the current fiscal year, compared to Rs 152.82 crore in the corresponding period of the previous year. However, the net profit witnessed a significant drop of over 34 per cent in net profit on a sequential basis.

At 11:30 am, the shares of the bank were trading in the red territory at Rs 16.75 price level, down by nearly 3 per cent on the National Stock Exchange.

During Q2FY24, Yes Bank reported a total net income of Rs 3,135 crore, representing a marginal 0.2 per cent decline from its total net income of Rs 3,141 crore in the previous quarter. On the other hand, there was a 9.4 per cent year-on-year increase in total net income, which reached Rs 2,866 crore in Q2FY23.

“The Bank’s Q2FY24 performance is a testament to the strength of the core franchise that the Bank has built through significant strategic interventions during the last three years.” Said Prashant Kumar, Managing Director & CEO, YES BANK.

During the quarter under review, the bank's asset quality displayed signs of improvement, as the gross non-performing asset (NPA) ratio held steady at 2 per cent, and the Net NPA ratio was maintained at 0.9 per cent which stood at 1 per cent during the last quarter.

Owing to the increased funding costs, Yes Bank's second-quarter net interest income (NII) reached Rs 1,925 crore, showing a 3.3 per cent reduction compared to the NII in Q2FY23. The Net Interest Margin (NIM) for Q2FY24 stands at 2.3 per cent, demonstrating a decline of nearly 30 basis points year-on-year.

“Amidst a challenging environment with respect to interest rates, deposit growth slowdown, as well as tightening liquidity, the Bank has managed to deliver YoY expansion in both operating profitability and net profitability. At the same time, the fortification of Balance Sheet from Asset Quality standpoint continues, supported by robust redemptions from the Security Receipts." Kumar added.

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