The private lender, where small retail investors held 27.43 per cent and HNIs held 7.85 per cent as on September 30, will report its quarterly numbers on Friday.
Brokerage Anand Rathi said the slippages could be high for the bank, but believes that higher provisions will be offset by significant recovery from DHFL. It expects the lender to report a profit of Rs 448.40 crore for the September quarter. The brokerage sees NIIs fall 8.6 per cent year-on-year to Rs 1,803 crore and NIMs down 60 basis points to 2.5 per cent. The brokerage projected net NPAs for the quarter at 5 per cent, up 30 basis points year-on-year.
Elara Capital saw Yes Bank profit at Rs 256.80 crore for the quarter led by a 21.8 per cent decline in NII at Rs 1,542.40 crore. Emkay Global reported a profit of Rs 152.70 crore to Yes Bank as compared to a profit of Rs 129.4o crore a year ago. This brokerage sees NIIs fall 22 per cent annually at Rs 1,536 crore.
“Low margins and higher provisions should control profits. For tensions to remain high,” it said.
Nirmal Bang Institutional Equities is expecting the private lender to report a loss of Rs 424.50 crore for the quarter as it sees net interest income (NII) falling 25 per cent to Rs 1,480 crore.
Yes Bank’s loans and advances grew only 3.6 per cent to Rs 1,72,945 crore for the quarter, even as larger peers such as ICICI Bank, HDFC Bank and Axis Bank reported double-digit growth in loans during the same period. saw growth.
Meanwhile, the bank’s deposits grew by 30.1 per cent in the quarter, the highest among peers.
Nirmal Bang expects the bank’s NIM to shrink by 123 basis points (5 basis points QoQ) to 2.4 per cent year-on-year. It sees credit cost for the bank rising to 2.6 per cent, up 26 basis points YoY or 135 bps QoQ.