Yes Bank reported a standalone net profit of Rs 452 crore for the March quarter of 2023-24, marking a more than two-fold increase from the year-ago period. This growth was primarily driven by benefits on the provision front.
The bank’s management stated that the increase in profit was due to write-back on income tax and interest on income tax returns. However, the bank faced limitations in complying with mandatory priority sector lending (PSL) requirements.
For the fiscal year 2023-24, Yes Bank reported a 74% growth in net profit, reaching Rs 1,251 crore. In the March quarter, the core net interest income grew by 2.3% to Rs 2,153 crore, although the net interest margin narrowed to 2.4% from 2.8% in the previous year.
Managing Director and Chief Executive Prashant Kumar highlighted the impact of the PSL shortfall on the net interest margin, which resulted in penalties. The bank aims to reduce its exposure to the Rural Infrastructure Development Fund and increase its focus on retail assets to improve NIM.
Yes Bank plans to increase its loan growth and deposits in the coming years, with a focus on small businesses, mid-market companies, and retail lending. The bank also aims to strengthen its asset quality and provision coverage ratio.
The bank’s partnership with Paytm has led to an increase in UPI transactions, and it plans to expand its branch network to enhance customer reach.
