YES BANK is emerging out of recovery mode owing to the great strides it made last year on multiple fronts. The private sector Bank made sizeable gains in optimising its operations and costs and strengthening key parameters – which has been reflected in reports issued by various ratings agencies.
YES BANK Chairman Sunil Mehta assured stakeholders at the 17th annual general meeting that the Bank has succeeded in dealing with all the legacy governance, compliance and risk issues and is now future-ready for strong sustainable growth. He also stated that this transformation was made possible due to the immense trust reposed by the customers and stakeholders in the fundamentals of the institution.
“Amid unprecedented circumstances that tested the resolve of businesses across the globe, YES BANK was able to post sequential gains for the first three quarters of FY21 and prevented the burden from being carried forward to FY22 by making the necessary provisions for stressed assets. The ratings upgrades by various agencies clearly demonstrate that we made significant gains in strengthening key parameters and optimizing our operations and costs,” said Mehta.
The Bank has delivered a robust performance through a 55% growth in its deposits and by accelerating digitization of key banking services for the safety and comfort of its customers. Also, it has successfully established detailed protocols and taken multiple initiatives to keep communities safe. Further, ESG considerations have been integrated into the Banks’s core business strategy by addressing environmental and social risks as well.
“Several changes across functions, driven by Board level decisions, have brought about a transformation that has put the Bank on a course of continual improvement and innovation. This is clear from the Bank’s performance in the first quarter of this fiscal — a 355% profit surge year on year to Rs 207 crore, the highest in 10 quarters. The Bank’s focus on digitization has been intense with a record 9.06 billion UPI transactions clocking a 102% growth over previous year, establishing the Bank as a clear market leader in the industry. Overall, the operating profit for FY21 increased by 42% over previous year, indicating a strong resurgence in the Bank’s operating performance,” he added.
YES BANK has vigorously strengthened its position on its strategic priorities of capital, liquidity, cost, growth, risk, stressed assets and governance. Recently, India Ratings had affirmed YES BANK’s long term issuer rating at “BBB” and CRISIL upgraded YES BANK’s tier II bonds and infrastructure bonds from “BBB” to “BBB+”, reflecting greater stability and adequate capital levels.