Yes Bank Shares Jump 9 pc On Monday: Here Are Key Reasons Behind The Rally (image source: iStock)
YES Bank shares soared up by 9 per cent on Monday, reaching a day’s high of Rs 28.50 on the BSE, following the bank’s robust financial performance for the March quarter. The lender reported a remarkable 123 per cent year-on-year surge in its net profit, reaching Rs 452 crore.
Stellar Financial Results for Q4 FY23-24
YES Bank reported an over two-fold jump in standalone net profit to Rs 452 crore for the March quarter of fiscal year 2023-24, compared to Rs 202.43 crore in the corresponding period last year. This surge was primarily attributed to benefits on the provision front.
Key Highlights of YES Bank’s Financial Performance
Profit Growth: The bank reported a significant 74 per cent growth in net profit for fiscal year 2023-24, reaching Rs 1,251 crore.
Net Interest Income (NIM): Despite a modest 2.3 per cent growth in core net interest income to Rs 2,153 crore, NIM narrowed to 2.4 per cent from 2.8 per cent due to a shortfall in mandatory priority sector lending (PSL) requirements.
Strategic Initiatives: YES Bank aims to address the PSL shortfall by focusing on expanding NIM and enhancing its retail assets, particularly in affordable housing and used vehicle loans.
Loan Growth & Deposit Targets: The bank plans to achieve over 17% loan growth and an 18.5 per cent increase in deposits for FY25, with a particular focus on lending to small businesses and mid-market companies.
Asset Quality: Despite witnessing fresh slippages, the bank’s gross non-performing assets (NPA) ratio improved to 1.7 per cent from the year-ago period’s 2.2 per cent.
Yes Bank Future Outlook and Strategic Initiatives
YES Bank is strategically focused on enhancing its technological capabilities, with significant investments allocated to technology infrastructure. The recent partnership with Paytm has notably boosted the bank’s UPI transactions.
Additionally, the bank plans to expand its branch network by adding 30 more branches in the upcoming quarter to its existing network of 1,234 branches.
SBI’s Stake Sale in YES Bank
In parallel news, media reports suggest that State Bank of India (SBI) has received government approval to sell its 25.02 per cent stake in YES Bank. Potential buyers, including Bain Capital, Saudi Arabia’s sovereign wealth fund, and Japanese funds, are reportedly interested in acquiring SBI’s stake in YES Bank, as per Financial Express.
