YES Bank shares in focus today; private lender announces date for Q4 results

Shares of YES Bank Ltd will be in focus on Monday, as the private lender announces the date for its board meeting, wherein it will consider and approve results for the quarter ended March 31. The company informed about the same through an exchange filing after the market hours on Friday.

"YES Bank has informed exchanges that the meeting of the board of directors of the company is scheduled on April 27, 2024, Saturday, inter alia to consider and approve audited financial results for the quarter (Q4FY24) and year ended March 31, 2024 (FY24)," said the lender in the exchange filing with the bourses.

Shares of YES Bank had settled at Rs 25.22 on Friday, rising more 1.2 per cent for the previous session. The total market capitalization of the lender stood more than Rs 72,500 crore. Shares of YES Bank have gained more than 11 per cent in the year 2024 so far, while it has soared about 50 per cent in the last six months.

Last week, YES Bank said that it has recorded 22.5 per cent growth in deposits and 14.1 per cent rise in loans and advances in the March 2024 quarter on a year-on-year (YoY) basis. CASA for the quarter came in at Rs 82,315 crore, up 23 per cent YoY over Rs 66,903 crore in Q4FY23.

In a filing to stock exchanges, the private lender said its loan and advances stood at Rs 2,28,465 crore at the end of March quarter, up 14.1 per cent YoY over Rs 2,00,201 crore at the end of the same quarter last year. On a sequential basis (QoQ), loan & advances grew 5 per cent over Rs 2,17,523 crore at the end of December quarter.

Deposits for the quarter were up 22.5 per cent YoY at Rs 2,66,364 crore against Rs 2,17,502 crore YoY. On sequential basis, deposits were up 10.1 per cent YoY over Rs 2,41,831 crore sequentially. CASA ratio stood at 30.9 per cent against 30.8 per cent YoY, and 29.7 per cent sequentially.

Nomura India said YES Bank's deposit growth was strong at 22.5 per cent YoY and 10 per cent sequentially led by robust growth of 23 per cent YoY (15 per cent sequentially) in CASA deposits. As a result, CASA ratio improved by 120 basis points sequentially to 30.9 per cent.

In its recent report, Nomura India said YES Bank's credit-to-deposit ratio moderated to 86 per cent against 90 per cent in the December quarter. Liquidity Coverage Ratio (LCR) came in at 116 per cent against 118 per cent in Q3FY24. The broking firm has retained its target price of Rs 16.50 on YES Bank with a 'neutral' rating and is awaiting further details from 4QFY24 results.

Nomura India anticipates YES Bank to achieve a Return on Assets (RoA) in the range of 0.5-0.8 per cent and Return on Equity (RoE) between 4.5-7.5 per cent in FY25F/FY26F. Despite an improving trend, YES Bank's return metrics remain notably lower compared to its peers, said Nomura India.

In contrast to the typically strong fourth quarter, Elara Securities predicts a relatively subdued performance for the banking sector in the March quarter. This period is expected to witness pressure on net interest margins (NIMs), consistent loan growth but weaker deposit growth, and cost challenges, including the impending impact of wage hikes and pension provisions for certain banks.