Q1 2027 Yes Bank Ltd Earnings Call Transcript
Key Points
- Yes Bank Ltd (BOM:532648) reported a strong net profit growth of 33.7% year-on-year to INR 1,071 crores.
- The bank's operating profit increased by 25.5% year-on-year to INR 1,704 crores.
- Net interest income rose by 17.5% year-on-year to INR 2,786 crores, with net interest margin improving by 20 basis points to 2.7%.
- Asset quality showed improvement with gross slippage reduced to 1.4% of advances, and GNPA and NNPA ratios at 1.3% and 0.2%, respectively.
- The bank received positive external validation with rating upgrades from Moody's, CARE, ICRA, and S&P Global, reflecting improved fundamentals.
- Inflationary pressures were noted, with inflation rising to a 17-month high of 4.4% due to food and fuel costs.
- Non-core income streams, such as gains from the security receipts portfolio, were significantly lower compared to the previous year.
- The bank's cost-to-income ratio, although improved, remains relatively high at 62.8%.
- Retail banking advances grew at a slower pace of 6.9% year-on-year, compared to other segments.
- The bank's net interest margin target of moving towards 3% over the next two years is challenged by intense deposit competition and rate cut cycles.
Ladies and gentlemen, good day, and welcome to YES Bank's Q1 FY27 results conference call. On the management panel, we have with us today Mr. Vinay M. Tonse, Managing Director and Chief Executive Officer; Dr. Rajan Pental, Executive Director; Mr.
Manish Jain, Executive Director; Mr. Niranjan Banodkar, Chief Financial Officer; and Mr. Sunil Parnami, Head, Investor Relations and Sustainability. Mr. Vinay M. Tonse will now give you an overview of the results, which will be followed by a Q&A session. (Operator Instructions) Please note that this conference is being recorded. Participants are requested to ask questions pertaining to the Bank's Q1 FY27 results. For any other information, you may reach out to the Corporate Communications team separately.
I now hand the conference over to Mr. Vinay M. Tonse. Thank you, and over to you, sir.
Thank you very much. Am I audible, please?
You are audible, sir.
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