Yes Bank is expected to report a robust set of numbers in the September ended quarter aided by a growth in the lender's loan book. The net interest income could grow between 11% and 23% in the range of Rs Rs 2,129 crore and Rs 2,359 crore. Meanwhile, the net profit may rise by up to 115% to Rs 4,843 crore.

The estimates have been given by JM Financial, Nomura and Kotak Institutional Equities.

While Nomura remains most bullish on Yes Bank’s net profit numbers in the reporting quarter, JM Financial’s NII estimates are highest among its other contemporaries.

Yes Bank will announce its quarterly earnings on Saturday, October 26, 2024.

Here’s what brokerages recommended:

JM Financial

Brokerage JM Financial sees a 23% YoY jump in Yes Bank’s net interest income (NII) at Rs 2,359 crore. On a sequential basis, this could be a 5% uptick.

The net profit for the reporting quarter is likely to be at Rs 484 crore which could go up by 115% on a YoY basis while declining by 3.6%.

The Pre Provisioning Operating Profit or PPoP is expected at Rs 1,060 crore which could go up by 32% on a YoY basis and 20% on a QoQ basis.

Nomura

Japanese brokerage Nomura has pegged Yes Bank’s NII at Rs 2,260 crore, which could go up by 18% on a YoY basis while seeing a marginal uptick of 1% on a sequential basis. PAT could be reported at Rs 550 crore, witnessing a likely uptick of 145% on a YoY basis and 10% on a QoQ basis.

PPoP is seen at Rs 1,020 crore, which could go up by 27% YoY and 15% on a QoQ basis.

Bank’s loans at the end of September ended quarter could be at Rs 2,36,500 crore which will likely be a 13% growth over Q2FY24 and 3% over Q1FY25. Meanwhile deposits are likely to jump 18% on a YoY basis and 5% on a QoQ basis at Rs 2,77,200 at the end of the September quarter.

Net interest margin (NIM) for the lender is seen at 2.4%, a 5 bps YoY gain while a 5 bps fall over April-June quarter.

Kotak Equities

Kotak Equities expects relatively stable NII growth of 11% YoY at Rs 2,129 crore, led by industry average loan growth of 13% YoY). Meanwhile, it may decline by 5% over the April-June quarter.

PAT may jump by 97% YoY at Rs 444 crore while witnessing a 12% sequential fall.

PPoP is seen around Rs 831 crore in Q2FY25, gaining by 4% YoY while falling by 6% on a sequential basis.

Bank could report a NIM of 2.6%, which is expected to be a 14 bps YoY fall while 19 bps on a QoQ.

“The bank is a bit more cautious in select segments of the retail portfolio. Deposit growth is relatively strong at 18% YoY. We expect NIM at 2.3% (decline of 10 bps QoQ) but there is likely to be a lot of volatility, given the nature of income booked when security receipts mature,” this brokerage said in its earnings preview note.

“We should see steady traction on recovery and upgrades this quarter (mostly reflected in changes to the value of security receipts),” the Kotak note said.

Kotak has built slippages of Rs 1,300 crore which stands at 2.3% of loans.

“The earnings impact is difficult to forecast, given the nature of provisioning policy. Focus is shifting toward rebuilding the business for the bank,” the brokerage said.

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