What you need to know about Yes Bank Q2 Results

YES Bank is India’s 5th largest private sector Bank and has been one of the best performing banks over the last decade.

The Private sector lender announced its Q2FY18 results and it proved to be a historic quarter for the Bank as its net profit rose 25.1 per cent year-on-year (YoY) to Rs 1,002.70 crores– the 1st time that the quarterly profit crossed the mark of INR 1,000 crores..While the Bank saw a rise in its Non-Performing Assets (NPA), the ratio at 1.82 percent is still better than most of its peer Banks.

Another key metric “loan growth” also showed momentum with a 35% year-on-year growth in total advances, which was spurred by 78% growth in Retail Advances. This growth in retail advances shows that the Bank is garnering market share in Retail liabilities and deposits. With the CASA ratio having improved to over 37%, this is definitely a good sign for the Bank’s performance.

The bank faced a setback as Divergence as assessed by RBI was at INR 6,355 crore. However, it was good to note that the Bank has been able to resolve/recover over 81% of this Divergence and the impact of this divergence to the NPAs was at INR 1,219 crore. This shows strong recovery mechanisms and should continue to help the Bank with its Asset Quality. Yes Bank has also been growing by leaps and bounds in the Digital Banking space and has built some great solutions to address various payments needs of consumers on corporates. Case in point, is their UPI – Unified Payments Interface leadership where they have grabbed a market share of 65% in merchant payments on the UPI platform.

In summary, except for a minor blip in Asset Quality, the Bank has shown strong operating performance and is capitalising on its growing retail franchise as well as increased digital capabilities backed by technology.