Private sector lender Yes Bank today reported a net loss of ₹600 crore in the quarter ending September 30, hurt by a one-time deferred tax adjustment of ₹709 crore on account of change in corporate tax rate regime. Excluding this impact, adjusted net profit was at ₹109 crore. Yes Bank had reported a net profit of ₹964 crore profit in the same quarter of the previous year.
Yes Bank's bottomline was also hurt by a rise in provisions to ₹1,336 crore in the September quarter, as compared to ₹939 crore in the year-earlier quarter.
The asset quality worsened on a sequential basis. Gross NPA as a ratio of total advances rose to 7.39% in September quarter as compared to 5.01% in the June quarter. Net NPA rose to 4.35% as compared to 2.91%.
Yes Bank had on Thursday disclosed that it has received a binding offer from a global investor for an investment of $1.2 billion, subject to regulatory and and other necessary approvals.
The bank in its earnings report today also said that it has received multiple other non-binding but strong bids from marquee domestic and global institutional investors and family offices.
"The board is evaluating all bids to ascertain the most optimal capital solution for the bank," it added. Yes Bank had raised $273 million via QIP route in the September quarter.
Yes Bank shares today closed 5.5% lower ahead of the earnings announcement, following a nearly 25% rally on Thursday.
Yes Bank also reported a rise in employee headcount by 2,466 during the second quarter, mainly in retail/branch banking.
Here are the highlights of Yes Bank Q2 earnings:
Net interest income at ₹2,186 crore in Q2FY20 and it includes the impact of ₹228 crores due to fresh slippages during the quarter
Net interest margin at 2.7%
Non-interest income at ₹946 crores
10% sequential growth in retail banking fees
Operating expenses at ₹1,673 crore for Q2FY20
Pre-provisioning operating profit at ₹1,458 crores for Q2FY20
Provisions of ₹1,336 crore.
Book Value at ₹109.0 per share as on September 30, 2019