Q4 FY 2022 Review

Yes Bank Limited reported a total net income of ₹5872 crores for the quarter ended March 31, 2022, compared to ₹4834 crores for March 31, 2021. Profit After Tax was ₹371 crores for the quarter ended, March 31, 2022, compared to -3790 crores, during the corresponding quarter of the previous year, respectively.

Yes Bank Limited - Investment Summary

Overview

• Yes Bank is a 'Full-Service Commercial 'Bank' providing a complete range of products, services, and technology- driven digital offerings, catering to Retail, MSME & Corporate clients.

• Yes Bank operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES, a wholly-owned subsidiary of the Bank. Headquartered in Mumbai, it has a Pan-India presence, including an IBU at GIFT City and a Representative Office in Abu Dhabi.

• Yes Bank Opened 50 new branches taking the total branch count to 1122 for FY22 and increase of 2,000+ YES Bankers taking the total headcount of employees to 24,346 in FY22

Yes Bank Limited - Quarterly Summary

Business

• Incorporated in 2004, Yes Bank was founded by Rana Kapoor and Ashok Kapur. It was India's fourth-largest private lender bank in 2020. However, due to mismanagement by the founders, bad loans, and severe deterioration in its financial statement, Yes bank almost collapsed.

• However, on 5 March 2020, in an attempt to avoid the Bank's collapse, RBI took control of it. RBI imposed a 30-day moratorium on Yes Bank's Operations in the interest of its customers and depositors. It suspended and superseded Yes Bank's board and later reconstructed the board, making Prashant Kumar (Former CFO, SBI) its new MD & CEO, along with Sunil Mehta, former non-executive chairman of Punjab National Bank, as Yes Bank's non-executive chairman.

• Presently, the State Bank of India is the largest shareholder in the Bank, with a stake of 30.00% as of 31st March 2022.

• Yes Bank became the country’s 6th largest private sector bank in terms of total assets during the year.

• Yes Bank is a go-to bank for digital transactions, with nearly every third digital transaction taking place through Yes Bank, enabling it to be a banker of majority e-commerce and fintech companies.

• Yes bank continues its leading market share position in UPI, Aadhaar renewal services, IMPS, NEFT, and micro-ATM with the number one position in UPI and NEFT. UPI transactions Yes Bank has a 42% market share. On the Aadhaar enabled payment services, Yes Bank’s share is 18.2%. On the NEFT services, Yes Bank is ranked number one, and its market share is 14.3%. Hence, if one takes the average of the entire digital payment space, including UPI, Aadhaar enabled, NEFT, IMPS, and RTGS, then Yes Bank contributes one-third of digital transactions supported by the Yes Bank infrastructure.

• Yes bank is a scheduled commercial bank regulated by the Reserve Bank of India.

• Yes Bank has three subsidiaries – YES Securities (India) Limited, YES Trustee Limited and YES Asset Management (India) Limited.

• Yes Bank provides UPI services for several major companies, such as Airtel, Cleartrip, RedBus, and PhonePe.

• Yes bank acquired over 24 percent of stake in dish TV India on 30 May 2020.

• Yes Bank has equities listed on the Bombay Stock Exchange and the National Stock Exchange of India and has bonds listed on the London stock exchange.

• Yes Bank’s business segments are Retail, Micro-SME, SME, Mid-corporate, Corporate, Treasury, and Other banking operations.

• Yes Bank's business segments include:

  • Treasury Operations:

    • Treasury activity Includes investments, all financial market activities undertaken on behalf of the Group’s customers, proprietary trading, maintenance of reserve requirements, and resource mobilization from other banks and financial institutions.

    • Treasury actively manages liquidity and compliance with critical regulatory items such as CRR (cash reserve ratio)/ SLR (statutory liquidity ratio) and trading in fixed income securities and currencies.

    • Treasury also shares the responsibility of interest rate risk management of the Bank.

  • Corporate Banking:

    • It Includes lending, deposit-taking, and other services offered to corporate customers. The Bank intends to have limited exposure in Corporate Banking and increases exposure to retail banking and SMEs.

    • The Bank has a robust underwriting and credit/process to address the inherent risks in Corporate Banking.

  • Retail Banking:

    • Retail Banking: Includes lending, deposit-taking, and other services offered to retail customers.

  • Other Banking Operations:

    • Includes para banking activities like third-party product distribution, merchant banking, etc.

• Out of the total revenue, 26% has been generated from Treasury operations, 39% from Corporate Banking, 33% from Retail Banking, and 2% from others in FY 2022, compared to 38%, 41%, 19%, and 2% in FY 2021, respectively.

Yes Bank Limited - Revenue Trend

Topline and Bottom-line trends (in crores)

Ratio Analysis

Yes Bank Limited - Financial Overview