Tag: YES Bank

YES Bank Block Deal: 2.2% equity worth ₹1,602 crore changes hands

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As many as ₹63.6 crore shares or 2.2% equity of YES Bank worth ₹1,602 crore changed hands at ₹25 per share in block deals on Friday, May 3, according to data available on the exchanges.

The official buyers and sellers of the block deal are not yet known.

On Thursday, May 2, CNBC-TV18 had reported, citing sources, that the private equity giant Carlyle Group was likely to offload a significant chunk of its ₹1,500 crore stake in the private lender via a block deal.

The Carlyle-backed entity, CA BASQUE INVESTMENTS, holds an 8.74% stake in YES Bank post the conversion of warrants as of Thursday. Goldman Sachs is said to be the broker for the deal.

YES Bank’s net profit for the March quarter came in at ₹454 crore, 124.3% more than the ₹202.4 crore reported in the corresponding period in the previous fiscal.

The lender’s net interest income was up 2.3% at ₹2,153.1 crore compared to the fourth quarter of the previous fiscal’s ₹2,105.2 crore.

The bank’s gross non-performing assets (NPA) were down 11% to ₹3,982 crore in the March quarter compared to the previous quarter’s ₹4,457.4 crore. In percentage terms, the Gross NPA for the quarter stood at 1.7% from 2% in the December quarter.

YES Bank also reported a 31.4% decline in net NPA to ₹1,329.7 crore in the fourth quarter compared to the ₹1,934.4 crore in the third quarter of the 2023-24 fiscal year. Its net NPA% was at 0.6% compared to the previous quarter’s 0.9%, reflecting improved asset quality metrics.

YES Bank shares were trading 1.18% higher at ₹25.75 apiece at 9.20 am on Friday, May 3. The stock has gained 59.13% in the past year.

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Block Deal Alert | Carlyle Group likely to sell stake worth ₹1,500 crore in YES Bank tomorrow

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private equity giant Carlyle Group is likely to offload a significant chunk of its stake worth ₹1,500 crore in private lender YES Bank through a block deal scheduled for tomorrow (May 3), sources privy to the developments told CNBC-TV18.

Carlyle, holding an 8.74% stake in YES Bank post-warrant conversion, is reportedly planning the stake sale through an entity named CA BASQUE INVESTMENTS, sources told CNBC-TV18. According to multiple people familiar with the development, Goldman Sachs is likely to be the broker of this deal.

YES Bank reported its earnings for the March quarter. Its net profit came in at ₹454 crore, 124.3% more than the ₹202.4 crore reported in the corresponding period in the previous fiscal. The lender’s net interest income was up 2.3% at ₹2,153.1 crore compared to the fourth quarter of FY23’s ₹2,105.2 crore.

The bank’s gross non-performing assets (NPA) were down 11% at ₹3,982 crore in the March quarter compared to the previous quarter’s ₹4,457.4 crore. The gross NPA% for the fourth quarter was pegged at 1.7% compared to the December quarter’s 2%.

It also reported a 31.4% decline in net NPA at ₹1,329.7 crore in the fourth quarter compared to the ₹1,934.4 crore in the third quarter of the 2023-24 fiscal year. Its net NPA% was at 0.60% compared to the previous quarter’s 0.9%, reflecting improved asset quality metrics.

Shares of Yes Bank Ltd ended at ₹25.44, down by ₹0.73, or 2.79% on the BSE.

Also Read: From reward points to new lounge access rules: Credit card changes to take place from May 1

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

YES Bank collaborates with ANQ to launch Pi and Phi credit cards

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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YES Bank has partnered with Bengaluru-based financial services provider ANQ to unveil two new credit cards designed for Indian consumers. The Pi and Phi co-branded cards aim to offer unique features and benefits, the companies said in a joint statement.

The YES BANK ANQ Pi Credit Card is a digital-only card that provides credit on Unified Payments Interface (UPI) for domestic transactions.

With no joining or annual fees, this card offers flexibility without additional costs, the companies said.

Users can earn 8 reward points on UPI transactions above ₹2,000 and gain access to RuPay Platinum Benefits.

Additionally, the card provides accelerated rewards on UPI spending and allows users to convert purchases into EMIs.

The YES BANK ANQ Phi Credit Card is a physical card catering to both domestic and international purchases.

Like the Pi card, there are no joining fees.

The Phi card offers rewards across various categories including dining and travel, along with fuel surcharge waivers and international lounge access.

Users can earn 24 reward points on selected categories for spends of ₹200 and 4 reward points on other spends of ₹200.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Credit card reward points revision, savings accounts tweaks & more — check key changes coming up in May

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Starting May 1, significant changes are set to impact banking services across India, with adjustments to utility bill payments and revisions to service charges by leading banks.

Here’s a breakdown of what’s changing:

IDFC First Bank’s reward points and lounge access rules

IDFC First Bank will be introducing a 1% surcharge, along with GST, on utility bill payments exceeding ₹20,000 in a single statement cycle, made via its credit cards.

However, certain exceptions apply, with cards like the First Private credit card and LIC Classic credit card exempt from these additional fees.

Further, there will be a reduction in the number of free domestic airport lounge visits on select credit cards from four to two per quarter.

YES Bank’s new reward points rule

YES Bank will implement a 1% surcharge, along with GST, on utility bill payments exceeding ₹15,000 in a single statement cycle, made via its credit cards.

However, transactions made through the Yes Bank Private credit card will be exempt from this surcharge.

Service charge revisions

Both YES Bank and ICICI Bank are set to revise service charges on savings accounts.

YES Bank will adjust its minimum average balance (AMB) requirements across various savings account variants, with changes ranging from ₹5,000 to ₹50,000.

Additionally, several account types will be discontinued, including Savings Exclusive and YES Savings Select.

Meanwhile, ICICI Bank will discontinue several account types, including Advantage Woman Savings Account and Aura Savings Account, among others.

Revisions will also cover charges for debit cards, cheque books, IMPS transactions, and cash transactions.

New KYC rule for mutual fund investments

A new KYC rule mandates that the name on mutual fund applications must match the name on the PAN card.

Failure to ensure this uniformity will result in the rejection of the application.

This rule aims to standardise names across official records and will only affect new investments, not existing ones.

Investors are advised to ensure that their name and date of birth match exactly with what appears on their PAN card to avoid application rejection.

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From reward points to new lounge access rules: Credit card changes to take place from May 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Starting May 1, utility bill payments via YES Bank and IDFC First Bank credit cards might get costlier as both banks are introducing surcharges on certain transactions.

IDFC First Bank will impose a 1% surcharge along with goods and services tax (GST) on bill payments exceeding ₹20,000 in a single statement cycle through its credit cards.

This move aims to rationalise costs associated with high-value transactions across various utilities such as telecommunications, electricity, gas, water, internet, and cable services.

Exceptions from the added fees have been made for specific cards like the First Private Credit Card, LIC Classic Credit Card, and LIC Select Credit Card.

Regarding airport lounge access, the number of free domestic airport lounge visits on IDFC First Select Credit Cards will be reduced from four each quarter to two. First Wealth Credit Cards will allow access to domestic and international airport lounges twice per quarter, down from four visits.

Similarly, YES Bank will implement a 1% surcharge along with GST on bill payments exceeding ₹15,000 in a single statement cycle through its credit cards.

However, exemptions will be provided for transactions made via the Yes Bank Private Credit Card.

These changes align with the broader industry trend of addressing the low-margin nature of utility transactions and deterring potential misuse.

According to Rohit Chhibbar, Head of Credit Cards Business at Paisabazaar, devaluation of credit cards can stem from various internal and external factors, including the bank’s strategic decisions, the sustainability of its rewards programs, and prevailing market and economic conditions.

Credit cards typically undergo several changes throughout their lifecycle, encompassing modifications in rewards programs, promotional offers, annual fees, and eligibility criteria.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

YES Bank shares zoom 10% after a strong Q4 performance; should you buy?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of YES Bank Ltd. jumped up to 10% to hit a day’s high of ₹28.55 on the NSE in Monday’s trade after strong March quarter earnings. At 9:52 am, the scrip was trading 5.54% higher at ₹27.60. YES Bank shares have gained 22% so far this year and are up nearly 75% in the last one year.

YES Bank’s March quarter earnings doubled year-on-year, led by lower provisions though Kotak Institutional Equities noted that several one-offs relating to IT refund, write-back in security receipts and gains in sale of loans to ARC, but offset by higher provisions.

The brokerage said that one-offs dominate earnings and that most one-offs were used to strengthen the balance sheet metrics.

Kotak in its note highlighted that the lender’s business is steadily recovering.

The broking firm also said that the current price factors most of the positive outcomes while the delivery of better return ratios and steady growth that is similar to other frontline banks are still a few years away.

“We would need a far lower valuation multiple to change our view. There is unauthenticated media reports on change in shareholding structure but we don’t see this to have a bearing on the financials in the near term,” the brokerage said.

The domestic brokerage firm has maintained a ‘Sell’ recommendation on the YES Bank stock with a target price of ₹19 per share.

The private sector lender reported a net profit of ₹452 crore for the fourth quarter, a 123% year-on-year (YoY) jump from ₹202 crore clocked in the year-ago period.

YES Bank earned interest income of ₹7,447.17 crore, up from ₹6,216.24 crore reported in the corresponding quarter of the last financial year. This was a 20% YoY jump.

Interest expended during the quarter under review came in at ₹5,294.15 crore, which was up from ₹4,111 crore. It was up 29% on the YoY basis.

The lender’s gross non-performing asset stood at 1.7%, down from 2.2% in the same quarter last year. The net NPA for the quarter came in at 0.6%, a 0.80% improvement on a year-on-year basis.

YES Bank’s net interest margins, a key profitability indicator for the lender, stayed flat sequentially at 2.4%.

The bank’s net interest income (NII) of ₹2,153 crore was a marginal uptick of 2% against ₹2,105 crore in the corresponding quarter last financial year.

Its total deposits stood at ₹2.6 lakh crore, up 22.5% while net advances grew 13.8% YoY to ₹2.27 lakh crore.

The returns on assets grew to 0.5% from 0.2% in the previous quarter and 0.2% in the same quarter of last financial year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

YES Bank Q4 Earnings | Net profit jumps 124% to ₹454 crore, asset quality improves

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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YES Bank on Saturday, April 27, reported its earnings for the March quarter. Its net profit came in at ₹454 crore, 124.3% more than the ₹202.4 crore reported in the corresponding period in the previous fiscal.

The lender’s net interest income was up 2.3% at ₹2,153.1 crore compared to the fourth quarter of FY23’s ₹2,105.2 crore.

The bank’s gross non-performing assets (NPA) was down 11% at ₹3,982 crore in the March quarter compared to the previous quarter’s ₹4,457.4 crore. The gross NPA% for the fourth quarter was pegged at 1.7% compared to the December quarter’s 2%.

#4QWithCNBCTV18 | #YesBank Q4

▶️Net Profit At Rs 454 Cr Vs Rs 202.4 Cr (YoY)

▶️NII Up 2.3% At Rs 2,153.1 Cr Vs Rs 2,105.2 Cr (YoY) pic.twitter.com/ZhYDQhqXzF

— CNBC-TV18 (@CNBCTV18Live) April 27, 2024

It also reported a 31.4% decline in net NPA at ₹1,329.7 crore in the fourth quarter compared to the ₹1,934.4 crore in the third quarter of the 2023-24 fiscal year. Its net NPA% was at 0.60% compared to the previous quarter’s 0.9%, reflecting improved asset quality metrics.

The company’s provisions for the March quarter were pegged at ₹471 crore compared to the previous quarter’s ₹554.7 crore. In the fourth quarter in FY23, the provisions were pegged at 618 crore.

YES Bank during its post-earnings concall said that it made consistent improvements across metrics int he last year. It added that FY24 marked its third straight year of profitability since its reconstruction.

#4QWithCNBCTV18 | As a bank, we made consistent improvements across metrics last year, FY24 marks the third straight year of profitability for the bank since its reconstruction

Gross slippages for Q4FY24 at Rs 1,356 cr vs 1,233 cr in Q3FY24@YESBANK Concall pic.twitter.com/wuOmpxbPRE

— CNBC-TV18 (@CNBCTV18Live) April 27, 2024

YES Bank shares ended 0.39% higher at ₹26.05 apiece on Friday, April 26. The stock has gained 12.53% in the past month and 63.32% in the last six months.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘Speculative in nature’: YES Bank on reports claiming Dubai’s Emirates NBD likely to buy stake

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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YES Bank shares rose up to 5% on Tuesday, April 23, after media reports suggested that Emirates NBD has expressed preliminary interest in acquiring a majority stake in the private lender.

YES Bank shares gained as much as 5.15% to hit a high of ₹26.5 apiece on the NSE in early trade. The stock was trading 2.38% higher at ₹25.8 apiece at 11.45 am.

Shares of YES Bank also jumped more than 5% on the BSE to hit an intraday high of ₹26.5 after a gap up opening.

Meanwhile, YES Bank in a clarification to the stock exchanges on the media reports termed the news as ‘speculative’. “The Bank would like to clarify that the contents of the said article are speculative in nature and the bank does not feel that it is appropriate to comment on market speculations,” YES Bank said in the filing.

“Further, we would like to clarify that presently, there are no material events which are required to be disclosed under Regulation 30 of the Listing Regulations,” the bank stated.

YES Bank said it will keep the stock exchanges informed of any material events as required under the SEBI regulations.

Stock exchanges had sought clarification from YES Bank after media reports claimed that Dubai’s largest lender Emirates NBD is considering submitting a bid to acquire a majority stake in the bank.

Quoting two people familiar with the development, the report mentioned that Emirates NBD has expressed preliminary interest and Emirates NBD is exploring this opportunity. Bids were expected to submitted by the end of the month

Earlier it was reported that Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp were also interested in submitting a bid for YES Bank. State Bank of India, which holds around 26% stake in YES Bank, plans to sell its stake in the private lender. SBI acquired a stake in 2020 to bail out crisis-ridden YES Bank. Three-year lock-in period for investors ended in March 2023.

Besides SBI, Life Insurance Corp, and private lenders HDFC Bank, ICICI Bank, Axis Bank Kotak Mahindra Bank and IDFC First Bank hold around 13.84% stake in YES Bank.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow