Yes Bank Q3 result FY21: Highlights

Yes Bank Q3 result FY21: Yes Bank deposit mobilization continues strong, at Rs 146233 cr grew 7.7% qoq and 38.8% over 9-month period. Yes Bank Commercial Deposits ratio further improved to 116%. Yes Bank CASA Ratio stood at 26%, First qoq rise in 4 quarters; 2.2 Lac. CASA accounts opened in Q3 FY21 vs. 1.5 Lac last quarter. Sustained momentum in Operating Profits stood at Rs 2286 cr, up 68.1% qoq. Yes Bank Cash Recoveries from NPA/ NPI at Rs 1512 Crores in Q3 FY21 (Rs 2947 cr for 9M FY21) of which P&L benefit at Rs 1283 cr Rs 2430 cr for 9M FY21•
 
Yes Bank Retail + SME disbursements Rs 11917 cr vs Rs 6787 cr in Q2; Retail advances mix at 28%, up 400 bps qoq. Yes Bank has entered into collaboration with Salesforce, a global leader in CRM, to build a next - gen retail technology platform. Launch of next generation products: Corporate NetBanking, YES Premia, YES Private Prime, E-Series Debit Card.
 

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Yes Bank Financial Highlights:
 
Yes Bank Net Profit stood at Rs 151 cr for Q3 FY21 as compared to loss of Rs 18560 cr in Q3 FY20; up 16.5% q-o-q. Net Interest Income stood at Rs 2560 cr grew 29.7% qoq aided by higher NIMs at 3.4% up 30 bps qoq. Non-Interest income for Q3 FY21 stood at Rs 1197 cr, grew 69.4% qoq. Yes Bank saw a significant increase seen in retail fees for Yes Bank. Operating expenses at Rs 1472 cr declined 13.2% yoy. C/I ratio improved to 43% in Q3 FY21. Total step up in provisioning of Rs 2935 cr; consists of additional Rs 765 cr towards Covid19 related provisioning (aggregate at Rs 2683 cr) and balance majorly towards increasing PCR of both NPA and NPI.
 
Yes Bank Net Advances at Rs 169721 cr grew 1.7% qoq; Strong pickup in Retail and SME disbursements. Liquidity Coverage Ratio remains healthy at 120% as on December 31, 2020. Capital position stood at : CET I ratio at 13.1%, Total CRAR at 19.6%. Asset quality parameters improve qoq: PCR for NPA improves to 76.8% vs. 75.7% last quarter; PCR for NPI at 77.9% v/s. 70.6% last quarter. GNPA of 15.4% (vs. 16.9% last quarter) while NNPA of 4.0% (vs. 4.7% last quarter).
 
Yes Bank Current quarter costs were driven by rise in business volumes and consequent increase in DSA (direct selling agent), deposit insurance etc. Cost benefits from various initiatives undertaken to materialize over coming quarters. Provisions classified as Standard Advances includes Rs 765 cr of additional Covid provisioning of Rs 544 cr due to provisioning as per requirement of RBI circular on Prudential Framework for Resolution of Stressed Assets dated June 7, 2019
 
Yes Bank Balance Sheet details decoded:
 
Liquidity continues to be in excess with LCR at 120% as on Dec 31, 2020 During the quarter, Yes Bank has prudently allocated Rs 560 cr of Capital towards valuation adjustment on the Standard AFS Corporate Bonds.
 
Yes Bank Retail Banking composition of Total Advances stood at 28% in Dec’20 up from 24% in Sep’20 while Gross Retail Disbursements stood at Rs 7470 cr; predominantly towards secured loans highest ever Small and Micro Enterprises disbursements Rs 4447 cr; higher than pre-covid levels.
 
Yes Bank Additional provisioning of  Rs 467 cr towards financial services arms of a diversified conglomerate Provision Coverage on the total NPI Exposure of Rs 5127 cr of the conglomerate increased to 72% from 63% last quarter. Of which, Provision Coverage on exposures to Financial Services entities at 76% Overall NPI provisioning coverage at 78% v/s 71% last quarter Additionally during the quarter, the Bank has prudently allocated Rs 560 cr of Capital, towards valuation adjustment on the Standard AFS Corporate Bonds
 
Yes Bank has not classified borrowers as NPA in line with RBI’s IRAC norms as per the Supreme Court interim order dated September 03, 2020 Recoveries & Upgrades of Rs 1066 cr in Q3 FY21 Write-offs of Rs 1747 cr in Q3 FY21 Provision coverage ratio at ~81% including technical write-offs The combined impact of above factors has led to Decline in GNPA from 16.80% as on March 31, 2020 to 15.36% as on December 31, 2020. Decline in NNPA from 5.03% as on March 31, 2020 to 4.04% as on December 31, 2020. Total Risk Weighted Assets to Total Assets Ratio for Dec’20 improved to 91.6% v/s. 94.4% in Sep’20.