Yes Bank Limited — Investor Meet, 31-01-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Financial Performance: YES Bank reported a significant 25% year-over-year growth in pre-provisioning operating profit (PPoP) for Q3, amounting to ₹1,079 cr. Sequentially, there was a 10.6% increase. The cost-to-income ratio improved, highlighting operational efficiency. Net interest margin (NIM) remained stable at 2.4%, while total deposits surged by 14.6% year-over-year, totaling around ₹2.77 lakh cr. Fee income rose by 26.6% year-on-year, reflecting effective cross-selling and customer acquisition.

Future Outlook and Growth Drivers: Management emphasized the focus on deposit growth in parallel with loan expansion. The launch of the IRIS Biz app and advancements in digital payments are expected to enhance customer engagement and wallet share, driving future growth. The bank is also optimistic about improving NIMs as retail loan disbursements normalize.

Order Book and Operational Updates: The retail asset quality showed improvements, with flat retail slippages and strong recoveries amounting to ₹1,843 cr in the current year. The ongoing resolution of security receipts is on track, supporting the asset quality recovery strategy.

Analyst Q&A Insights: Analysts raised queries regarding the discrepancies in the growth and slippage rates between personal loans (PL) and credit cards, which management clarified were due to different portfolio characteristics. Furthermore, provisions for NPAs are expected to normalize, with a target credit cost around 30 bps.

Market or Regulatory Updates: No significant regulatory changes affecting the bank were reported during the call. Management remains vigilant on external macroeconomic impacts.

Strategic Focus Areas: Key areas of strategic focus include digital transformation, efficient branch operations, and enhancing cross-sell capabilities to maximize profitability.

Investor Insight: With improving financial health and a clear roadmap for growth, the bank’s trajectory appears optimistic for retail investors, suggesting a ‘buy’ stance as the fundamentals strengthen and efficiencies take hold.