YES Bank posted a net profit of ₹231 crore for Q3 FY24, up 4.4-fold on year and 2.8 per cent on quarter. Net interest income (NII) was up 2.3 per cent on year and 4.8 per cent on quarter at ₹2,017 crore. Net interest margin (NIM) for the quarter was at 2.4 per cent, up 10 bps on quarter but 10 bps lower on year.

In the earnings call, the management said the bank is focussing on yield accretive segments, and the increasing share of retail loans is expected to support margins going forward, even as sectoral headwinds are expected to continue to weigh.

Net Advances were up 11.8 per cent y-o-y and 4.0 per cent q-o-q to ₹2.2 lakh crore, with the share of retail and SME loans rising to 63 per cent from 58 per cent a year ago and share of larger corporate loans falling to 23 per cent from 29 per cent.

Disbursements for the quarter were ₹28,498 crore, of which retail assets were ₹9,769 crore, rural loans were ₹1,126 crore, SME loans at ₹8,265 crore and mid corporate loans at ₹1,108 crore.

“We have remained focussed on executing our profitability improvement roadmap by leveraging our core and key business levers of retail asset mix optimisation, strong SME and mid-market value proposition, exploiting our branches as the key fulcrum of our business to drive higher cross sell and lower our costs, and digital and transaction banking capabilities and partnerships,” MD and CEO Prashant Kumar said.

The bank also has a focused on Priority Sector Lending (PSL) strategy, early progress of which has started to reflect through a number of underlying business vectors in Q3, he added.

Deposits were up 13.2 per cent y-o-y and 3.2 per cent q-o-q at ₹2.4 lakh crore. Retail and small business deposits were grew 16.8 per cent on year. CASA ratio stood at 29.7 per cent, slightly down from 29.9 per cent a year ago but higher than 29.4 per cent a quarter ago.

Gross NPA ratio at 2.0 per cent was flat both on year and quarter. Net NPA ratio at 0.9 per cent was flat on quarter and slightly better than 1.0 per cent a year ago.

Slippages for the quarter were ₹1,233 crore, largely from the retail portfolio. These were largely off-set by of ₹1,316 crore. Kumar said that the bank is hoping for resolution of two large accounts worth around ₹700 crore in Q4, where the Swiss Challenge has already been initiated. In addition, the bank is aiming for resolution and recoveries of ₹1,500 crore in Q4, which should help meet the yearly resolution target of ₹5,000 crore. Recoveries for the nine-month period so far were around ₹3,800 crore.