Business growth of Yes Bank and margin performance will take long to catch up with peers; costs will also remain elevated
April 25, 2023 / 10:48 AM IST
Yes Bank | CMP: Rs 15.70 | Shares ended over 3 percent lower as the company on Saturday reported a near 45% drop in net profit year-on-year for the January-March quarter as provisions for bad loans increased. Net profit fell to RS 202 crores ($24.63 million) for the reporting quarter from Rs 367 crores in the same period a year earlier. Analysts had expected profit to drop to Rs 288 crores, according to Refinitiv data.
PRO Only Highlights
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Quarterly performance largely backed by improved realisations
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Medium-term triggers China plus and protectionist measures for tyre industry
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Valuations not inexpensive; but improved medium-term outlook
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Quarterly performance largely backed by improved realisations
–
Medium-term triggers China plus and protectionist measures for tyre industry
–
Valuations not inexpensive; but improved medium-term outlook
Highlights
Uninspiring numbers weighed down by provision
Incremental credit cost to decline, thanks to recovery
New NPA formation an area to watch out for
Growth picking up but liability warrants focus
Core earnings improvement key – NIM expansion and cost reduction critical
ROA expansion unimpressive in the context of valuation
Yes Bank (CMP: Rs 16.20, Market Cap: Rs 46,582 crore) has reported yet another uninspiring quarter. While core performance showed marginal improvement with a sequential uptick both in loan growth and interest margin, the reported PPOP…