Yes bank

Stock Opportunities Not-so-Hidden Gems
2034

I have a theory and i beleive this holds true for Yes bank, since yes bank saga has already occured, everyone’s eyes are on yes bank so the next saga wouldn’t be under Yes Bank because it has caught the attraction of every stakeholder and people are very conservative about yes bank so even if a leaf of any wrong happening blows in yes bank it will come to everyone’s eyes immediately because people are looking so closely at Yes bank without blinking their eyes, so I beleive next Yes bank saga wouldn’t happen in Yes bank. “It’s something like police keeping an eye on older thieves but the stealer is someone new”

And this doesn’t mean that everything has been fixed in this bank, there are lot of things yet to get fixed, like their consumer side mobile banking app sucks despite the fact that they are the technology providers to many fintechs.

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2035

1QWithCNBCTV18 | #YesBank Q1

:arrow_right:Net Profit Up 47% At Rs 502.4 Cr Vs Rs 342.5 Cr (YoY)
:arrow_right:NII Up 12.2% At Rs 2,244 Cr Vs Rs 1,999.6 Cr (YoY)
:arrow_right:Gross NPA At Rs 3,845 Cr Vs Rs 3,982.6 Cr (QoQ)
:arrow_right:Net NPA At Rs 1,246 Cr Vs Rs 1,330 Cr (QoQ)
:arrow_right:Gross NPA Ratio At 1.7% Vs 1.7% (QoQ)
:arrow_right:Net NPA Ratio At 0.5% Vs 0.6% (QoQ)

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2036

Yes Bank Ltd. | CMP Rs. 24.8 | M Cap Rs. 77650 Cr | 52 W H/L 33/14

(Nirmal Bang Retail Research)

Result is above expectations owing to improvement in asset quality

Advances came at Rs. 229920 Cr (15% YoY, 0.9% QoQ)

Net Interest Income came at Rs. 2244 Cr vs expectation of Rs. 2225 Cr, YoY Rs. 2000 Cr, QoQ Rs. 2153 Cr

NIM came at 2.4% vs QoQ 2.4%

Non Interest Income came at Rs. 1199 Cr vs YoY Rs. 1141 Cr, QoQ Rs. 1569 Cr

PBP came at Rs. 885 Cr vs expectation of Rs. 895 Cr, YoY Rs. 818 Cr, QoQ Rs. 902 Cr

Provisions came at Rs. 212 Cr vs expectation of Rs. 472 Cr, YoY Rs. 360 Cr, QoQ Rs. 471 Cr

Credit Cost came at 0.4% vs YoY 0.7%, QoQ 0.9%

Adj. PAT came at Rs. 502 Cr vs expectation of Rs. 394 Cr, YoY Rs. 343 Cr, QoQ Rs. 452 Cr

Gross NPA came at Rs. 3845 Cr vs QoQ Rs. 3983 Cr at 1.7% vs QoQ 1.7%

Net NPA came at Rs. 1246 Cr vs QoQ Rs. 1330 Cr at 0.5% vs QoQ 0.6%

Slippages came at Rs. 1205 Cr vs QoQ Rs. 1356 Cr with slippage ratio of 2.1% vs QoQ 2.38%

Net Stressed Assets (NNPA, Net Rstd, Net SMA, Net other NPA) stood at Rs. 9859.9 Cr vs QoQ Rs. 10560.6 Cr at 4.29% vs QoQ 4.64%

Quarter EPS is Rs. 0.2

Stock is trading at P/E of 21.2x FY25E EPS & 1.7x trailing P/Adj. BV

2037

Yes Bank:
FII holding increased.
Lowest NPA.

2038

DII holding has come down
Yes Bank will go the Vodafone way !!!

2039

It’s not that it has decreased; it’s related to FII. Additionally, comparing Vodafone Idea with Yes Bank is not accurate.

Yes Bank is different; it has a TTM profit of ₹1,455 crore and a YoY profit of ₹1,285 crore. Its ROCE is over 5%.

On the other hand, Vodafone Idea is a consistently loss-making company with a negative ROCE, among other issues.

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2040

Summary of Yes Bank Q2 FY25 Investor Concall Highlights:

  • Record Profit Growth: Yes Bank posted a significant quarterly profit of ₹553 crore in Q2 FY25, marking a 146% year-on-year increase and 10% growth from the previous quarter, driven by a strong operating profit and 14% increase in net interest income.
  • Improved CASA Ratio: The bank’s CASA (Current Account Savings Account) ratio reached 32%, reflecting an increase in low-cost deposits that contribute to stable net interest margins and reduced funding costs.
  • Strategic Focus on Retail Growth: Yes Bank is carefully expanding its retail assets, balancing profitability with risk management, particularly due to industry-wide challenges in unsecured retail lending.
  • Enhanced Asset Quality: Asset quality improved with a gross NPA (Non-Performing Assets) ratio decrease to 1.6% from 1.7% in the previous quarter, and a provision coverage ratio of 70%.
  • Commitment to Shareholders: Management reassured investors regarding share price performance and dividend policy, emphasizing their goal of consistent financial performance and optimized returns for stakeholders.
  • Managing Margin Pressures: Despite potential pressure from moderating interest rates, the bank expects stable margins due to well-matched assets and liabilities and plans to reduce SLR (Statutory Liquidity Ratio) and RFR (Risk-Free Rate) security holdings, which have impacted margins.
  • Improved Credit Practices: Yes Bank is enhancing asset quality in unsecured retail lending through stricter underwriting standards and improved collection processes.
  • CASA Growth Strategy: The robust CASA growth is attributed to a focused strategy on service quality, customer engagement, and expanding branch networks.

Overall: Yes Bank’s investor call highlighted strong Q2 results, a proactive approach to industry challenges, and dedication to sustainable growth and profitability.

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2041

Yes bank todays update:

The bank is giving an update about something it shared earlier regarding the sale of bad loans (NPA Portfolio) to JC Flower ARC in December 2022.

Recently, the bank received ₹161 crores from one specific trust as part of this transaction. After subtracting the value of these assets already on their books, the remaining amount exceeds a certain limit (materiality threshold) set by market regulations.

Since this is considered a significant event based on those rules, the bank is officially disclosing it to the public as required by law.

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