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Yes Bank Q1 Earnings Preview: What you should watch out for

Updated : July 16, 2019 02:11 PM IST

Yes Bank will be reporting its first-quarter earnings on Wednesday and analysts expect the lender to report higher provisioning and lower loan growth.

  • Analysts are expecting elevated slippages to hurt the asset quality of the bank.
  • The key thing to watch will be the loan growth, which could moderate towards 18-20 percent level. Last quarter, it was close to 19 percent.
  • The net interest margin (NIM) could get negatively impacted on account of elevated slippages as expected by analysts and also the moderation in loan growth. The NIM was at 3.1 percent in Q4.
  • Provisions may remain elevated. The bank has come out with a watchlist of the stressed asset pool of Rs 10,000 crore wherein it will have to make provisions. So one can expect provisions to remain elevated.
  • Capital raising plan will be the key factor to watch out because the lender is facing capital constraints and it cannot go on forever in terms of sustaining capital at these levels.
  • CNBC-TV18’s poll suggests a net interest income (NII) growth of 12 percent, which might be on the lower side in last 10-12 quarters while net profit is seen at Rs 150 crore, which is down about 88 percent year-on-year (YoY).
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