AI-generated · cited to primary sources · not investment advice
Yes Bank (532648) Jul 2024 Filing Analysis
Does management do what it says?
Management confirmed that unsecured stress (specifically in personal loans and credit cards) is expected to remain range-bound for the next two quarters (until March '25). (1 in progress, 1 met across 2 tracked commitments)
“So unsecured will remain at that level for the next 1 or 2 quarters.”
The bank expects the momentum in Fee Income to continue, targeting a growth trend of 20% plus. — target: > 20%
“At least the underlying trends on core fees continue to hold good. Yes, of course, there were some pulls and pushes that played out during the quarter, but we are confident that the fee trend should hold up about 20% plus.”
See the full cited Management analysis of Yes Bank
Where does growth come from?
The bank is continuing its physical footprint expansion to target CASA-rich clusters, adding 9 new branches in the current quarter. (2 steady, 1 accelerating across 3 signals)
“added nearly 140 new branches since January '23 in CASA rich clusters including 9 in Quarter 1 of FY '25.”
The bank is intentionally slowing down unsecured lending and credit cards due to market-wide stress, leading to muted growth in this high-yield segment. (3 decelerating across 3 signals)
“unsecured book in line with the market has some issue... as a result, you will also see a muted growth around unsecured.”
See the full cited Future Growth analysis of Yes Bank
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