YES Bank Annual Results

Growth in NII leading to PAT growth of 29.0% (Rs. 1,179.4 Crores) in Q4FY18 and 26.9% (Rs. 4,224.6 Crores) in FY18


  • Strong Earnings Delivery: Healthy growth in NII leading to PAT growth of 29.0% (Rs. 1,179.4 Crores) in Q4FY18 and 26.9% ( Rs. 4,224.6 Crores) in FY18
  • Large Bank Growth Phase Milestones: Crossed significant milestones of Rs. 3 Lakh Crores in Total Assets, and US$ 2.5 Bn in IBU Total Assets. Advances and Deposits in excess of Rs. 2 Lakh Crores each
  • Well segmented and granular growth: Advances growth of 53.9% y-o-y spread across Corporate, MSME and Retail businesses. Core Retail Banking advances doubled in last one year, now at 12.2% of Total Advances, coupled with healthy growth of 34.4% in MSME
  • Healthy Asset Quality delivery: Improvement in both GNPA and NNPA. Credit costs contained at 76 bps for FY18
  • Leadership position in Digital Space continues: Ranked #2 in performance on Digital payments across Public, Private, Foreign & Payment Banks by Ministry of Electronics & Information Technology (MeitY) for FY18
  • Dividend of Rs. 2.7 per share recommended by Management & Board

Commenting on the results and financial performance, Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, “FY18 has been a landmark year in YES Bank’s ‘Large Bank Growth Phase’ with the Bank crossing significant milestones in size, outreach & granularity while continuing to deliver on satisfactory earnings. Well segmented and granular growth across Corporate, MSME and Retail businesses has resulted in Advances crossing Rs. 2 Lakh Crores, clearly demonstrating breadth of product offerings, and depth of relationships, across segments and sectors. Further Bank’s IBU (GIFT City) business continues to expand, with total assets crossing US$ 2.5 Bn within 3 years of operations. YES Bank also successfully completed its maiden MTN issuance of US$ 600 Mn in the past quarter to support diversified funding for this growth.Ás we step into the 4th year (FY18-19) of this current 5 year Large Bank Growth Phase (upto March 31, 2020), we remain well positioned to deliver on growth & earnings while preserving asset quality, and continuing to invest in Digital and technology initiatives towards making YES BANK a cutting edge Digital home country Indian Bank.”

2. PROFIT & LOSS: Growth translating to Robust Earnings delivery

  • Net Profit grew by 29.0% y-oy (Rs. 1,179.4 Crores) for Q4FY18 and 26.9% y-o-y (Rs. 4,224.6 Crores) in FY18
  • Net Interest Income grew by 31.4% y-o-y (Rs. 2,154.2 Crores) for Q4FY18, and 33.5% y-o-y (Rs. 7,737.1 Crores) in FY18
  • NIMs stand healthy at 3.4% for Q4FY18 and 3.5% for FY18 (up from 3.4% in FY17).
  • Non-Interest Income grew by 13.0% y-o-y (Rs. 1,421.0 Crores) for Q4FY18, and 25.7% y-o-y (Rs. 5,223.8 Crores) in FY18
  • Stable Cost to Income ratio at 40.3% for Q4FY18 and 40.2% for FY18 (improves from 41.4% for FY17)
  • Consistent return ratios with RoA at 1.6% and RoE at 18.8% for Q4FY18. For FY18, RoA at 1.6% and RoE at 17.7%
  • Book Value at Rs. 111.8 per share

3. BALANCE SHEET: Robust growth across relationship & business segments & increasing granularity

  • Total Assets grew by 45.3% y-o-y to Rs. 3,12,445.6 Crores. IBU Assets grew by 166.0% y-o-y to US$ 2.8 Bn
  • Deposits grew by 40.5% y-o-y to Rs. 2,00,738.1 Crores
  • CASA ratio at 36.5%, on the back of 41.1% y-o-y growth. SA (Rs. 44,350.5 Crores) and CA (Rs. 28,825.7 Crores) deposits posted strong growth of 35.3% and 51.0% y-o-y respectively. CASA + Retail FDs as a % of Total Deposits stands at a healthy 57.2%
  • Advances grew by 53.9% y-o-y to Rs. 2,03,533.9 Crores on the back of robust growth across Corporate, MSME and Retail businesses. Retail Banking Advances grew by 99.1% y-o-y to 12.2% of Advances (up from 9.4% as on March 31, 2017). Segmental mix below:

  • Total Capital Adequacy at 18.4% with Total Capital Funds at Rs. 46,975.7 Crores. Tier I Ratio and CET I ratio healthy at 13.2% and 9.7% respectively
  • In FY18, Bank raised Rs. 5,415 Crores of Basel III AT I, and Rs. 7,000 Crores of Basel III Tier II Capital Funds aggregating to Rs. 12,415 Crores of Total Capital Funds. This is the highest hybrid capital raise in any FY since the inception of the Bank reflecting on excellent domestic market appetite for YES Bank capital qualifying Bonds
  • Risk Weighted Assets stood at Rs. 2,55,343.3 Crores. RWA to Total Assets improved to 81.7% (from 86.6% as on March 31, 2017) given incremental lending to higher rated Corporates

4. ASSET QUALITY: Highly Satisfactory Asset Quality parameters & Improving outlook

(A) Details of Asset Quality Parameters:

(B) Improving Asset Quality Outlook:

I. Adequate provisioning on exposures to select accounts referenced in List 1 & 2 RBI IBC NCLT notification (~40 accounts systemically identified in June ’17 (12) & September 17 (28) respectively)

  1. Details of exposure to List 1 accounts (0.16% of Gross Advances)
    • Total exposure of Rs. 319 Crores (Funded exposure only) on 2 accounts, both classified as NPA with a provision coverage of 50%
    • Bank expects recovery of 60-65% of exposures to List 1 accounts, latest by Q2FY19
  2. Details of exposure to List 2 accounts (0.32% of Gross Advances)
  • Total exposure of Rs. 650 Crores across 7 accounts
  • Entire Funded exposure from the above, aggregating to Rs. 568 Crores (across 3 accounts), is classified as NPA and has provision Coverage of 43%
  • Adequate provisioning on these exposures with 50-60% collectability

II. Minimal impact of RBI circular dated Feb 12, 2018 – Resolution of Stressed Assets Revised Framework

  1. No Immediate impact:
    • Nil Slippage during the quarter from restructured book on account of Feb 12, 2018 RBI Circular.
    • No impact on the outstanding restructured book (0.16% of Gross Advances) as on March 31, 2018 as schemes of Restructuring have been fully implemented
  2. Minimal Potential impact:
  • Exposures to accounts where the Bank expects a delay in implementation of resolution plan triggering a potential reference to NCLT as per Feb 12, 2018 RBI notification (For Borrowers with aggregate debt of > Rs. 2,000 Crores):
  • The Bank has further proactively reviewed its portfolio for borrowers with aggregate debt of Rs. 1,000 – 2,000 Crores & Rs. 100 – 1,000 Crores in FY18, and expects a minimal impact for any accounts being potentially referred to NCLT

5. SENSITIVE SECTOR DISCLOSURE: Decreased from 9.3% to 8.3% sequentially

Overall Corporate portfolio continues to be well rated with nearly 80% of the portfolio rated ‘A’ or better
(Based on Internal Corporate rating models mapped to external ratings).

Overall portfolio is well distributed with significant deployment in YES BANK focused knowledge sectors
where the Bank has developed considerable sectoral expertise with specialized Relationship, Product and
Risk Managers (3 Eye Relationship and Risk Management organizational framework)

6. DIGITAL BANKING: Pioneers in Innovation

  • YES Bank continues to be a leader within the new age payments space
  • Ranked #2 in performance on Digital payments across Public, Private, Foreign & Payment Banks by Ministry of Electronics & Information Technology (MeitY) for FY18
  • Largest market share of 72% in UPI Merchant Payments volumes and 20% market share in the total volumes during FY18. Volumes witnessed exponential growth of 33X in FY18
  • Total YES Bank UPI registrations have crossed 3 Crores, Merchant partner base of 80,000+
  • Top Remitter Bank within peer group and #2 across Industry, for IMPS transactions as per NPCI, for FY18. Volumes witnessed 155% growth y-o-y
  • Successfully processed 51 lakh AEPS transactions, within just three months of operationalization. Enabled 40,000+ Business Correspondent Agents for successfully providing AEPS services
  • Increase of 197% in Volume and 166% in Value of YES money Domestic Remittance Programme
  • Continued focus on Innovation and Superior Product Delivery:
  • YES Mobile registrations have increased by 2.4 times y-o-y with increase in transaction value & Volumes by ~2X and ~3.2X y-o-y respectively
  • YES ROBOT – Personal Banking Assistant, India’s first artificial intelligence enabled banking bot with On-the-Go banking assistance, GPS assistance, real time indicative loan eligibility for commercial & MSME loans and accessibility from Facebook Messenger and YES BANK website. Successfully answered ~5 lac customer queries since launch.


According to The Financial Brand (March 2018), YES BANK is:

  • Highest followed Bank Brand on Twitter with over 3.3 million followers & on Instagram with 644,000 followers
  • 2nd highest followed Global Bank Brand on Facebook with more than 7.3 million Page followers


  • Employee strength as on March 31, 2018 stood at 18,238
  • Branch network stood at 1,100 branches as on March 31, 2018 an increase of 50 branches during the quarter. ATM Network stood at 1,724 which includes 565 Bunch Note Acceptors/Cash Recyclers
  • YES BANK raised USD 600 Million For 5 Year Tenor under its USD 1 Billion MTN Program
  • It is the largest debut International bond issuance by an Indian bank
  • First bank out of GIFT City, Gandhinagar to launch MTN issuance, and continues to be the largest amongst the operational IBUs with Balance Sheet size crossing USD 2.5 Billion
  • The Bond is listed on India INX, Singapore Stock Exchange and London Stock Exchange.
  • Received RBI approval to open Representative Offices in London and Singapore. This is in continuation with YES Bank’s international foray to expand services to the NRI population and Indian origin business at these locations and to also be positive for International Business development
  • Only Indian bank to be awarded ‘Prime’ status by OEKOM Research AG in their latest ESG assessment. OEKOM provides ESG research for assets totaling more than EUR 1.5 trillion. With the ‘Prime’ status being awarded, YES BANK has been placed in the top-12% of a peer group consisting of 249 banks worldwide
  • Renewal of authorization granted by RBI for import of Gold and Silver till March 2019. YES BANK has imported 60 tonnes of gold in FY18 (34 tonnes in FY17)
  • Board of Directors vide meeting dated April 26, 2018 approved and recommend to the shareholders for their approval, the following items:
  • An aggregate limit of US$ 1 Bn upto which the Board of Directors through the Capital Raising Committee could consider and approve proposals for issuance of equity shares through ADR/GDR/QIP or any other appropriate route, in single or multiple tranches (with a post issuance dilution cap of 10%)
  • An aggregate limit of Rs. 30,000 Crore upto which the Board of Directors through the Capital Raising Committee could consider and approve proposals for issuance of debt securities including but not limited to non-convertible debentures, MTN, Bonds on private placement basis, in single or multiple tranches (as per Section 42 of the Companies Act 2013)
  • Increase in Borrowing limit to Rs. 1.1 Lakh Crore (as per provisions of Section 180 (1)(c) of the Companies Act 2013)
  • Reappointment of Main Promoter Mr. Rana Kapoor as MD&CEO for a period of 3 years commencing from September 1, 2018 (subject to shareholders & RBI approval)