YES Bank has reported weak Q1FY24 earnings with muted business growth, sequential NIM decline, rise in slippages / net NPAs and drop in PCR. Reported PAT came in at INR 3.425bn with annualised RoA at 0.4%. We remain concerned on the bank’s muted operating earnings (PPOP as % of assets at ~1.0% for FY23), where we see only gradual improvement going ahead (1.1-1.3% for FY24E-25E) due to relatively higher gestation period of retail businesses and intense competition.