Yes Bank shares Q3 update, deposits rise 16% while loans and advances grow 12%

Sharing its business update for the third quarter of the current fiscal (Q3FY23), Yes Bank on Wednesday said that its advances were up at ₹196,826 crore, from ₹176,241 crore, up nearly 12% year-on-year (YoY) and up over 2% from ₹192,235 crore quarter-on-quarter (QoQ).

The bank highlighted that pursuant to the sale of exposures to ARC, Loans & Advances figure as on December 31, 2022 is normalised to make figures comparable with previous periods i.e. an amount of Rs. 5,171 crores has been added representing the net carrying value of the loan portfolio, as on September 30, 2022, sold to JC Flowers Asset Reconstruction Private Limited.

Last month, the private sector lender said it has transferred stressed assets of ₹48,000 crore to JC Flowers Asset Reconstruction Pvt Ltd, a move that will wipe the bank’s book clean of dud assets.

Meanwhile, the lender's deposits rose to ₹213,608 crore during the December 2022 quarter, up by 16% of ₹184,288 crore from the year ago quarter and up 6.8% from ₹200,021 crore in the previous quarter of September 2022.

Its credit to deposit Ratio (A/B) stood at 89.7% during the October-December 2022 period, as compared to 96.1% from the September 2022 quarter and 95.6% in the December 2021 quarter. Further, its Liquidity Coverage Ratio (LCR) rose to 119.5% versus 105% QoQ, however, slipped from 130% YoY. 

The bank released the provisional numbers ahead of the official announcement of the financial results for the quarter ended December 31, 2022 which is expected to be announced soon. 

During the quarter ended September 2022 (Q2), Yes Bank reported a 32% decline in its net profit at ₹153 crore on higher provisions, as compared to ₹225 crore in the year-ago period. Its core net interest income jumped 31.7% to ₹1,991 crore during the quarter on the back of 11% growth in loans and 0.40% expansion in net interest margin at 2.6%.

Shares of Yes Bank were trading over a per cent lower at ₹21 apiece on the BSE in early deals. The banking stock has gained more than 50% in a year's period.