Yes Bank registered 5 million UPI transactions monthly after Paytm partnership, says CEO

Before the partnership with Paytm, we were seeing around 3.3 million UPI transactions.

Private sector lender Yes Bank has registered around 5 million monthly transactions on the unified payments interface (UPI) since its partnership with Paytm, Managing Director and Chief Executive Officer Prashant Kumar said on April 27.

“Before the partnership with Paytm, we were seeing around 3.3 million UPI transactions and now we are seeing 5 million monthly transactions on UPI,” Kumar said at a post results press conference.

The bank, Kumar said, has around 55 percent market share in UPI transactions by merchants. “Our market share in merchant UPI transactions is around 55 percent. This gives us advantage on fee income and we may look at cross selling products to them in future,” he said.

Yes Bank and Axis Bank went live on Paytm app early March 15, allowing users to create new handles.

Also read: Yes Bank, Axis Bank go live on Paytm's UPI platform

Yes Bank's partnership with Paytm was finalised on the day RBI's deadline for Paytm Payments Bank Limited (PPBL) to stop all banking operations ended. PPBL was acting as the backend bank powering Paytm's UPI payments until now.

New users trying to register for UPI on Paytm app will get new handles backed by these banks instead of PPBL, which has almost been rendered inactive by the restrictions imposed by the Reserve Bank of India.

Yes Bank has gone live with a closed group of users with @ptyes handle and Axis Bank has gone with @ptaxis handle.

Yes Bank has also taken on the additional role of migrating existing @paytm handles as of now. Paytm has around 90 million UPI users who are using @paytm handles. Other banks will also join Yes Bank in taking over these handles gradually.

Yes Bank’s Q4 results

The bank reported a net profit of Rs 451 crore for the January-March quarter of financial year (FY) 2023-24, which marks a 123 percent jump as compared to Rs 202 crore clocked in the year-ago period.

Yes Bank's gross non-performing asset (NPA) stood at 1.7 percent, down from 2.2 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.6 percent, improving from 0.80 percent on a year-on-year basis. Gross slippages for Q4FY24 stood at Rs 1,356 crore versus Rs 1,233 crore in Q3FY24.

The net interest income (NII) of the lender came in at Rs 2153 crore, increased marginally by 2 percent as compared to Rs 2105 crore reported in the corresponding quarter of the previous fiscal.

Net advances grew at 13.8 percent YoY and stood at Rs 2.27 lakh crore, aided by sustained growth momentum in SME and mid corporate advances and resumption of growth in corporate segment. Total deposits stood at Rs 2.6 lakh crore, up 22.5 percent. CASA ratio was at 30.9 percent vs 30.8 percent in Q4FY23.

The lender saw compression in net interest margin which dropped to 2.4 percent versus.2.8 percent in Q4FY23.