Yes Bank announced on Saturday that it has procured an additional 2.4 crore shares of J C Flowers Asset Reconstruction (JC Flowers ARC), elevating its ownership to 9.9 percent. These shares were officially transferred from JCF ARC LLC to the bank on October 27, 2023, according to Yes Bank’s regulatory filing.
In a noteworthy update, the bank revealed, “On November 28, 2022, the bank had acquired 9.9 percent of the equity share capital of JC Flowers ARC. However, due to certain corporate actions in JC Flowers ARC, the bank’s stake had reduced to 5.01 percent from 9.9 percent.”
To rectify this, in line with the terms outlined in the share subscription and purchase agreement, Yes Bank has now secured additional shares in JC Flowers ARC, restoring its stake to 9.9 percent. The bank’s acquisition includes 24,643,558 equity shares of JC Flowers ARC, priced at Rs 29.68 per share with a face value of Rs 10, sold at a premium of Rs 19.68 per unit, amounting to a total of Rs 731,420,804.
JC Flowers ARC, established on May 6, 2015, operates as an asset reconstruction company under the legal framework of the Companies Act, 1956 and Companies Act, 2013. It is registered in compliance with section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Yes Bank’s Q2 2024 Report Reveals Strong Growth in Net Profit
Yes Bank, headquartered in Mumbai, announced impressive results for the quarter ending September, demonstrating a robust 47.4% surge in net profit, totaling ₹225.2 crore. This remarkable performance was attributed to consistent growth in the loan portfolio and reduced provisions.
In contrast, during the same period last year, the bank had reported a net profit of Rs 152.8 crore, falling short of the CNBC-TV18 poll estimate of ₹349.9 crore.
The net interest income, which signifies the disparity between interest earned and interest paid, amounted to ₹1,925.1 crore for the quarter in review, marking a 3.3% decrease from the previous quarter, which had registered ₹1,991.4 crore.
Regarding asset quality, the Gross Non-Performing Assets (NPA) ratio stood at ₹4,319 crore or 1.72% of gross advances by September 2023, while the Net NPA ratio dropped to 0.9% over the same period, reflecting a 10 basis points reduction from the previous quarter.
On the stock market, Yes Bank’s shares experienced a 1.76% rise, closing at Rs 17.35 per share on the NSE on Friday. Over the course of the year, the stock faced a 20% decline, but exhibited a gain of 8.10% in the last twelve months.
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During the second quarter of FY24, Yes Bank’s Provision Coverage Ratio (PCR) was recorded at 56.4%, showing an increase from 48.4% in the initial quarter of the current fiscal year.
As anticipated, Yes Bank registered a net interest income (NII) of ₹1,925 crore, reflecting a 3.3% decrease from its NII in Q2FY23, attributed to the elevated cost of funding. The Net Interest Margin (NIM) for Q2FY24 stands at 2.3%, marking a decline of nearly 30 basis points year-on-year and 20 basis points quarter-on-quarter.
In the same period, Yes Bank’s non-interest income for Q2FY24 amounted to ₹1,210 crore, witnessing a substantial 38.4% year-on-year increase and a modest 6% quarter-on-quarter rise.
Prashant Kumar, Managing Director & CEO, YES BANK said, “The Bank’s Q2 FY24 performance is a testament to the strength of the core franchise that the Bank has built through significant strategic interventions during the last three years. Amidst a challenging environment with respect to interest rates, deposit growth slowdown, as well as tightening liquidity, the Bank has managed to deliver Yo-Y expansion in both operating profitability and net profitability. At the same time, the fortification of Balance Sheet from Asset Quality standpoint continues, supported by robust redemptions from the Security Receipts.”