YES Bank is scheduled to share its results for the quarter and half year ended on September 30, 2024 on Saturday, October 26. Brokerages tracking the private lender believe that it may deliver a mixed set of numbers in the Q2FY25 and H1FY25 on the weekend.
According to brokerages, YES Bank may report a more than 100 per cent rise in its net profit on a year-on-year (YoY) basis, while sequential performance (quarter-on-quarter) numbers may remain under pressure. It is likely to report a double-digit growth in net interest income and pre-provisioning operating profit for the quarter.
Anand Rathi Research pegs YES Bank's net interest income (NII) at Rs 2,285.6 crore up 18 per cent YoY, while 2 per cent higher QoQ. Pre-provisioning operating profit (PPoP) is seen at Rs 902.8 crore, up 12.7 per cent YoY and 2 per cent QoQ. PAT is seen falling 8 per cent QOQ but zooming 105 per cent QoQ at Rs 460.7 crore. It has a 'sell' rating on YES Bank as of now.
Emkay Global Financial Services pegs YES Bank's NII at Rs 2,310.9 crore, up 20 per cent YoY and 3 per cent QoQ. PPoP are seen at Rs 1,013.6 crore, rising 26.5 per cent YoY and 14.5 per cent QoQ. PAT is likely to come in at Rs 508.7 crore, zooming 126 per cent YoY and 1.3 per cent sequentially.
"We expect earnings to remain flat QoQ due to flat margins; slippages should remain flat QoQ but elevated," said Emkay Global, which is expecting net interest margins to come in stable at 2.4 per cent for Q2FY25. "YES Bank reported slightly lower growth against our expectations and its deposit growth rate was moderate during the period," it said.
Shares of YES Bank tumbled nearly 4 per cent to Rs 19.24 on Friday, with its market capitalization barely holding Rs 60,000 crore mark. The scrip, however, made a partial recovery from day's low and settled at Rs 19.40, falling 3 per cent for the day.
Kotak Institutional Equites sees YES Bank's NNIs at Rs 2,128.8 crore, up 11 per cent YoY but down 5 per cent QoQ. PPoP is sell coming in at Rs 831.4 crore, up 4 per cent YoY but down 6.1 per cent QoQ. PAT may nearly double YoY to Rs 443.7 crore but down 12 per cent sequentially. RoA is seen contracting marginally on QoQ comparison.
"We expect a relatively stable NII growth led by industry average loan growth. The bank is a bit more cautious in select segments of the retail portfolio. Deposit growth is relatively strong There is likely to be a lot of volatility given the nature of income booked when security receipts mature. We should see steady traction on recovery and upgrades this quarter," Kotak added.