Yes Bank is a full-service commercial bank with a pan-India presence that offers a diverse range of services, products, and technology-driven digital offerings, enabling clients to realize their full potential and serving the nation's upcoming enterprises.

They are pleased to provide a strong digital service that increases the accessibility and convenience of banking for their  Corporate, Mid Corporate, SME, and Retail (including Rural) clients with benefits that make banking enjoyable. Their strategy is tech-driven and service-focused.

Additionally, they provide financial solutions to underserved areas and emerging sectors.

They run their brokerage, merchant banking, and investment banking operations through their wholly-owned subsidiary YES SECURITIES. They also run a representative office in Abu Dhabi and an IFSC Banking Unit in GIFT City in Gandhinagar, Gujarat.

YES Bank marked a significant milestone in FY23 with its ongoing transformation effort.

It included the Bank strengthening its balance sheet by finishing the assignment of a portfolio of legacy stressed assets to an ARC and obtaining growth financing from funds connected to two major global private equity investors.

The Bank raised approximately 8,900 crore USD 1.1 billion in equity capital during the year from funds connected to two well-known international private equity investors, Carlyle and Advent International, who each acquired a 9.99% stake in the Bank on a fully diluted basis and post-full conversion of outstanding warrants.

This is a testament to their innate capabilities since it is one of the biggest private capital raises by an Indian private sector bank in the past 20 years.

 During FY23, YES BANK created new loans and sanctions totaling close to ~1 lakh crore. While their deposits increased by 10.3% year over year, their loan book saw growth of 12.3%.

 They are getting more specific; as of March 31, 2023, the ratio of Retail and SME advances to their Mid-Corporate and Large Corporate book was almost 59:41%. They anticipate that ratio to remain relatively constant going forward as the large corporate portfolio's de-bulking and de-risking process draws to a close.

FINANCIAL INFORMATION

Source: Company financial Report

The earnings figures for the second quarter and six months ending September 30, 2023, were released by Yes Bank Limited. The company's net income for the second quarter was INR 2,286.4 million, down from INR 1,604.1 million in the same period last year. From ongoing activities, basic earnings per share were INR 0.08 as opposed to INR 0.06 a year earlier. From continuing activities, diluted earnings per share were INR 0.08 as opposed to INR 0.06 a year earlier.Net income for the half-year was INR 5,753.2 million, up from INR 4,745.5 million in the previous year.

SHAREHOLDING PATTERN

Source: Company financial Report

SHAREHOLDING COMPARE (% Holding)

Source: Company financial Report

COMPARE VALUATIONS WITH PEERS

Source: Company financial Report

Expanded reach to 1,192 branches, 150 Business Correspondent Banking Outlets spread over 700+ sites, and 1,301 ATMs expanded by 83 branches in FY 2022–2023 to increase presence.

Increased the use of the AI-powered YES Robot to offer retail liability and asset-based solutions to clients as a tool for employee-assisted advice.

Additionally, YES Robot will enable a smooth rise in asset acquisition and cross-selling revenue.

 By increasing and densifying physical distribution in the top 20 clusters for retail deposits and asset development, the cluster banking approach will be used to deploy incremental resources and branches. Meanwhile, digital distribution will increase concurrently with physical distribution as a fraction of total distribution.

YES BANK has boosted consumer engagement and experience by investing heavily in modern and digital technology. It meets clients' basic transactional needs for cash withdrawals using Aadhaar and domestic money transfers.

The domestic situation has survived well despite uncontrollably occurring exogenous shocks.

FY2024 is predicted to have the greatest real GDP growth globally, at 6.5%. Inflation, which started the current fiscal year well in April at 4.70%, is expected to remain in the modest range despite possible shocks from unfavorable climate change effects brought on by the anticipated return of El Nino this year. The expectation of a record rabi food grain production, however, improves the picture for food prices and growth generally.

 We predict that the average CPI in FY2024 would be between 5.2% and 5%, down from 6.7% in FY2023, which will provide much-needed relief to regulators.