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YES Bank shares fall 5% from the day’s high after Q1 results
July 25, 2023
Shares of YES Bank gave up initial gains and fell during the early trading session Monday after the company reported a mixed bag of performance in the quarter ended on June 30, 2023. The stock rose 2 percent during the early trade but dropped about 5 percent from the day’s high.
YES Bank reported a 10 percent rise in the net profit on a year-on-year (YoY) basis at ₹343 crores, which was ₹314 crore in the year-ago period. On a quarter-on-quarter (QoQ) basis, YES Bank reported over 69 percent rise in net profit against ₹202.43 crore net profit recorded in Q4FY23.
The net interest income (NIIs) for the private lender was up 8.1 percent from a year ago and stood at ₹1,999.6 crore. YES Bank’s Gross NPA improved 20 basis points QoQ to 2.2 percent in Q1FY24, while its net NPAs depleted 20 basis points (bps) to 1 percent from 0.8 percent in Q4FY23.
Following the announcement of earnings, shares of Yes Bank gained more than 2 percent to ₹18.44 on Monday, but the stock crashed about 5 percent to ₹17.53 as the session progressed. The lenders’ total market capitalization stood over ₹50,500 crore. The scrip had settled at ₹18.06 on Friday.
Provisions for the June 2023 quarter more than doubled YoY to ₹360 crore. During the quarter, net interest margin (NIMs) saw a growth of 10 bps YoY to 2.5 percent. Blaming the rising provisioning for a dip in net profit, YES bank said that it has managed to report full-year profitability for the second straight year despite rising accelerated provisioning.
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