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NEW DELHI: Private lender YES Bank will come out with its earnings numbers for December quarter on Thursday.
There are expectations that bank may report higher slippages and loan provisions for its exposure to ILFS group.
However, net interest margins may remain stable for quarter ended December 31.
IDBI Capital Market projected 9.70 per cent year-on-year dip in profit after tax at Rs 972.90 crore in Q3FY19 over Rs 1,076.90 crore in Q3FY18.
However, brokerage firm sees 38 per cent and 27.60 per cent YoY rise in net interest income and pre-provision profit (PPP), respectively.
“The company may report higher provisions on exposure towards ILFS group,” IDBI Capital Markets said in a report.
More than earnings performance, market participants must be waiting for an update on appointment of new managing director and CEO in YES Bank.
Kotak Institutional Equities sees 18.10 per cent and 7.80 per cent year-on-year rise in net interest income (NII) and pre-provision profit.
However, it projected 3.60 per cent year-on-year dip in PAT in Q3FY19.
“We expect loan growth to decelerate to around 30 per cent from 60 per cent as bank is in a stage of transition.
However, key monitorable would be funding profile and progress in deposits mobilisation.
We expect continued pressure on net interest margin.
Asset quality ratios could see marginal deterioration.
We expect sharp slowdown in fee income given weak growth in new business,” Kotak Institutional Equities said in a report.
However, Motilal Oswal Finanical Services sees 15.60 per cent, 33 per cent and 39.50 per cent year-on-year rise in PAT, PPP and net interest income, respectively.
“We expect NIM to remain largely flattish due to MCLR increase and pricing power shifting towards banks.
Consequently, NII growth is expected to remain robust at around 39 per cent YoY,” Motilal Oswal Financial Services said in a report.
