Yes Bank aims to recoup over Rs 5,000 cr in FY23: MD & CEO
Nearly completing its transformation journey since the implementation of the restructuring measures in March 2020, Yes Bank aims to recoup more than Rs 5,000 crore in the current financial year, the lender said in its 2021-22 annual report.
The bank’s transformation journey is now almost complete and the restructuring is yielding solid results. The bank reported net profit of Rs 1,066 crore in FY 2021-22 – the first full year of profitability recorded since FY19, Yes Bank Chairman Sunil Mehta said in the annual report released Wednesday.
“With the lessons of the past now firmly embedded, we have become a more innovative and robust organization, fully aware of what lies ahead and how to get there,” Mehta said.
He said the bank had restored market confidence with its performance in recent years and continued to build businesses for the future.
Mehta said strong growth was reflected in total assets, advances and deposits, and the strategic objective of allocating the bank’s advances between individuals and MSMEs to businesses at 60:40 had been achieved.
Its managing director and CEO, Prashant Kumar, said that during the second wave of COVID-19 which brought uncertain times, Yes Bank was able to post one of its best annual and quarterly results.
“To reinforce our commitment to all our stakeholders, we have shared our strategic objectives for the 2022-23 fiscal year,” Kumar said.
This includes the CASA (Current Account Savings Account) ratio at 35%, the combination of retail and MSME advances to further improve by more than 400 basis points (4%) compared to the current 60:40, year-over-year growth leads of more than 15 percent with business advance growth of 10%, he said.
In addition, the bank has a growth target for SMEs and medium-sized businesses of more than 25% during the year, maintains a CD (cash on deposit) ratio below 100%, while recoveries and stakes upgrades are targeted at more than Rs 5,000 crore, Kumar said. in its address to shareholders.
In the fiscal year ending March 2022, the bank’s balance sheet crossed Rs 3 lakh crore and the Gross Non-Performing Assets (GNPA) ratio improved to 13.9% from 15.4% in the year. ‘Previous exercice. Net NPAs amounted to 4.5% at the end of March 2022.
Additionally, the private sector lender had new loan sanctions worth Rs 70,000 crore during the year. Of this, almost Rs 33,000 crore was in retail assets.
There was an unwavering focus on recoveries during the year, Kumar said, adding that the stressed asset management team was instrumental in delivering cash recoveries and asset upgrades. an amount of Rs 7,290 crore in 2021-22, on the back of Rs 5,782 crore in FY2020-21.
”The strong push towards business generation has by no means taken away our focus from improving the quality of our loan portfolio, with NPA ratio improving to 13.9%…” , he noted.
Kumar also said the bank foresees high growth potential within emerging rural markets and MSMEs.
Currently, Indian MSMEs contribute nearly a third of the country’s GDP through their domestic and international trade, and a large proportion of them are adopting digital modes of operation.
He said Yes Bank reported nearly Rs 2,500 crore in new sanctions/disbursements in the rural segment and Rs 18,000 crore to SMEs in the 2021-22 financial year.
Regarding environmental, social and governance (ESG) goals, Yes Bank said it aims to achieve net zero emissions from its operations by 2030. As a first step, it has shifted to sourcing renewable energy to power its headquarters in Mumbai, among others.
Committed to creating a diverse and inclusive workplace, the bank aims to increase the participation of women to 30% of its workforce over the next five years. It is also in the process of recruiting people with disabilities in certain centres.
“We hold a leading position in UPI and AePS, with market share of 43% and 18% for fiscal year 2021-22, respectively. In fact, the bank processes almost one in three digital transactions made in India.
“We also have a reasonable market share while processing payments via NEFT (14% market share), IMPS (12% market share) and Micro PLCs (3rd player with 10% market share) “, added Kumar.
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