Kotak Institutional Equities estimates a 6% YoY rise in NII to Rs 1,968 crore, while net profit is expected to fall 4% YoY to Rs 298 crore. YES Bank reported an 8% YoY increase in loans to Rs 2 lakh crore for Q1, but the figure only grew 0.1% sequentially. Advances growth, excluding ARC transactions, saw a 10% YoY and 0.1% QoQ rise.
In the previous quarter (March), net profit dropped 45% to Rs 202 crore due to increased provisions. NIMs for the current quarter are estimated to be 2.8%, a 30 bps decline QoQ, but analysts expect volatility due to the nature of income booked when security receipts mature.
Expectations from YES Bank’s Q1:
– Kotak Institutional Equities: Business momentum is gaining traction in retail and MSME segments, but overall loan growth will be lower than industry average at 8% YoY. Deposit growth at 13% YoY is meeting business requirements. Recovery and upgrades are expected.
– Nuvama: Muted numbers are expected with weak loan and fee growth and a decline in sequential NII based on the soft business update.
– ICICI Securities: The brokerage estimates a 12% YoY growth in NII to Rs 2,074 crore, with a 1.5% sequential drop. Profit growth is expected to decline 9% YoY to Rs 282 crore.
(Disclaimer: The views and opinions expressed by the experts are their own and do not represent those of Economic Times)