Apr'25 View on Yes Bank Ltd

Yes Bank Ltd is engaged in providing a wide range of banking and financial services AND is the 6th largest private sector bank in total assets terms. Analysis • Yes Bank reported ~2.5X yoy earnings growth, led by ~50% yoy decline in provisions and 25% yoy operating profit growth. • Slippages stood at 2.3% and were driven by retail loans. • Provision reversals in the investment portfolio kept credit costs low. • Recovery in RoE comparable to the peers is still a few years away. Positives: • Deposits grew ~15% yoy and flat qoq, while loan growth was ~13% yoy and ~4% qoq. • Non-interest income grew ~27% yoy, driven by the strong performance in treasury trading income. • Gross NPL ratio remained flat qoq at ~1.6%, while the net NPL ratio remained flat qoq at ~0.5%. Negatives: • NIM has held up unchanged but it is still quite low at 2.4%. • We still find valuations expensive for the return ratios that the bank is delivering