YES Bank shares in focus today on 45% decline in Q4 profit

Shares of private sector lender YES Bank are in focus today after the private sector lender reported a 45 per cent fall in its March quarter net profit.  Profit fell to Rs 202 crore in Q4 against Rs 367.46 crore profit in the corresponding quarter of the previous fiscal. 

YES Bank stock fell 1.36% in the pre-open session to Rs 16 against the previous close of Rs 16.22 on BSE today. Stock of YES Bank has gained 16.27 per cent in a year and lost 21.26 per cent in 2023. In a month, the stock has gained 7.63 per cent. Market cap of the bank stood at Rs 46,008 crore today. 

In terms of technicals, the relative strength index (RSI) of the YES Bank stock stands at 56, signaling the stock is neither oversold nor overbought. YES Bank has a one-year beta of 1.1, indicating high volatility during the period.  

Doubling of provisions led the private sector lender to report a 45% fall in Q4 profit. Total provisions were up 127 per cent to Rs 618 crore, which dented the bottom line and were one of the prime reasons for the drop in profits. Provisions for non-performing advances zoomed to Rs 1,311 crore as against Rs 227 crore in the year-ago period. 

For the last fiscal FY23, the bank clocked a 32.7 per cent fall in its net profit at Rs 717 crore. 

Net interest income rose 15.4 per cent in the March quarter to Rs 2,105 crore on the back of a 0.30 per cent expansion in the net interest margin to 2.8 per cent and an over 12 per cent credit growth. The overall deposits grew by over 10 per cent. 

Non-interest income was up 22.8 per cent to Rs 1,082 crore, and was led by core fee income, especially the one coming from retail side. 

 In the December quarter of the previous fiscal, the bank clocked a 80.66% year-on-year fall in its standalone profit for the December quarter, amounting to Rs 51.52 crore, due to ageing-related provisions. However, net interest income logged a 11.7% YoY growth at Rs 1,971 crore in Q3. 

Meanwhile, March shareholding data show that 13 mutual funds owned 3.32 crore shares or 0.12 per cent stake. 13 insurance firms also held 4.62% stake or 132.94 crore shares at the end of the last quarter. 49.72 lakh resident individuals held 22.91% in the bank with an individual share capital of up to Rs 2 lakh. 6877 resident individuals held 200.59 crore shares of the firm, amounting to a stake of 6.98 per cent with an individual share capital of over Rs 2 lakh. 504 foreign portfolio investors owned 664.52 crore shares or 23.11 per cent stake in the lender at the end of March quarter. 

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