Yes Bank's Q3 PAT declines 81% to ₹51.5 cr, gross NPA contracts steeply on transfer to ARC

Mumbai-based Yes Bank presented its third-quarter earnings for FY23 on Saturday. 

The bank posted a PAT of ₹51.52 crore in Q3FY23 as against ₹266.43 crore in the same quarter last year, registering a decline of 80.66%. 

Also, PAT dropped by 66.28% compared to ₹152.82 crore in the preceding quarter. 

Among the major highlights of Q3 is that Yes Bank's gross NPA reached its lowest level since Q3 of FY19, due to the transfer of stressed assets to asset reconstruction company, JC Flowers.

The lender sustained improvements in NPA ratios during Q3. The bank's gross NPA dropped by 12.63% to 2.02% in Q3FY23 compared to 14.65% in Q3 of the previous fiscal.

Also, gross NPA contracted by 10.87% compared to 12.89% in September 2022 quarter.

Net NPA also declined sharply to 1.03% in Q3FY23 versus 5.29% in Q3FY22 and 3.60% in Q2FY23.

The bank's gross slippages during the quarter were at ₹1,607 crore. Recoveries and upgrades from fresh slippages were at ₹500 crore in Q3 taking net slippages to ₹1,100 crore.

Yes Bank said, resolution momentum continues with Total Recoveries & Upgrades for Q3FY23 at ₹1,270 crore, well on track to achieve the FY23 guidance.

Yes Bank has already announced its provisional data for advances and deposits during Q3FY23.

The bank's loans and advances climbed 11.7% YoY and 2.4% QoQ to ₹196,826 crore in Q3 of the current fiscal, while deposits zoomed by 15.9% YoY and 6.8% QoQ to ₹213,608 crore.

The liquidity coverage ratio (LCR) stood at 89.7% in the quarter.