Private sector lender YES Bank on Monday saw a 45 percent decline in its profit for the January to March 2023 period to Rs 202 crore. However, one of the most noteworthy achievements was the bank's net NPA ratio, which is currently below 1 percent.
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In an interview with CNBC-TV18, Prashant Kumar, managing director and CEO of YES Bank said the net non-performing assets (NPAs) ratio is below 1 percent now. However, the net interest margin is not peaking out, but it will continue its upward trajectory.
He said, "The net NPA has come down to below 1 percent. It's 0.8 percent and in the history of YES Bank, this is one of the best. Even in terms of net assets as well as net carrying value of security receipts, has come down from 4.8 percent as on March 22, to 2.4 percent."
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Kumar also spoke about the net interest margin (NIM), which he said is not peaking out and will continue its upward trajectory. This is an important metric for banks, as it measures the difference between the interest income earned on loans and the interest paid on deposits. A higher NIM generally indicates better profitability for the bank, and Kumar's comments suggest that Yes Bank is well-positioned to continue generating healthy returns.
Another key trend of the bank is the growth of its retail segment, which is currently growing faster than the corporate segment. Kumar expects this trend to continue and for retail to form 50 percent of the bank's loans in the future. This is a strategic move for the bank, as retail lending is generally considered less risky than corporate lending, and can also provide more stable, long-term returns.
Talking about market share, he said YES Bank's market share has been improving, which is a positive sign for the bank's competitiveness and growth prospects. With a strong focus on retail lending and a track record of effective risk management, the bank appears to be well-positioned to continue growing and delivering value to its customers and shareholders.
Therefore, with a solid financial footing, a focus on profitable growth, and a commitment to delivering value to customers and shareholders, YES Bank appears to be on a strong trajectory for the future.
For more details, watch the accompanying video
First Published: Apr 24, 2023 3:22 PM IST
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