YES Bank is a ‘Full-Service Commercial Bank’ offering a full range of products, services and technology-driven digital offerings to retail, MSME and corporate clients. As its Investment Banking, Merchant Banking and Brokerage business is run through YES SECURITIES, a wholly-owned subsidiary of the Bank, its Mumbai headquarters happens to be the home to the Bank. The company has a pan-India presence, including an IBU located at GIFT City, and a Representative Office in Abu Dhabi.
Net interest income for the quarter, however, dropped 23.4% on-year to Rs 1,512 crore, falling short of analysts’ expectations. This was due to a sharp decline in provisions. YES Bank’s provisions for bad loans dropped 65 percent year-on-year to Rs 377 crore.
A notable improvement in asset quality was reported by the lender as gross non-performing loans fell to 15.6% from 15.6% in the previous quarter. Similarly, net non-performing loans fell to 5.5% from 5.8% in the previous quarter. As of the end of the quarter, YES Bank said it had restructured a total of Rs 6,184 crore of loans. Overdue books, which are loans that are overdue but less than 90 days, were down by Rs 6,000 crore sequentially.
In the reported quarter, the current account-savings account ratio increased to 29.4 percent from 27.4 percent in the previous quarter. The percentage of retail loans among total loan disbursements in the quarter improved 100 basis points sequentially to 55 percent.
The lender posted growth in advances of 3.5 percent on a year-on-year basis, and growth in deposits of 30 percent on a year-on-year basis. Despite this, the lender’s operating performance was underwhelming as its operating profit fell 45.8 percent year on year to Rs 678 crore. The net interest margin, too, dropped from 3.1 percent to 2.2 percent. At the National Stock Exchange, YES Bank’s shares were down 4.9 percent at Rs 13.60.
YES Bank with Amazon Pay to process UPI transactions:
Yes Bank announced today that it has partnered with Amazon Pay and Amazon Web Services (AWS), to offer users an instant real-time payment facility via UPI. UPI allows peer-to-peer and person-to-merchant transactions between banks through Yes Bank’s digital payments platform and expands Yes Bank’s digital banking offerings.
Using the integration, Amazon Pay can issue UPI IDs with the @yapl handle, allowing customers to make secure, fast and convenient payments. YES BANK recorded a market share of around 40% by volume in the UPI ecosystem and around 30% by volume in the UPI Merchant Acquiring business in the Financial Year 2020-21.
As a result of this collaboration, Yes Bank is able to acquire merchants via the Amazon Pay platform, enhancing its presence in the UPI merchant business segment. The Bank designed a cloud-native UPI processing platform to handle the high number of transactions observed during peak periods such as festivals and annual sales. The Bank currently hosts its UPI processing platform on Amazon Web Services.
