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Business News/ Industry / Banking/  Yes Bank reports 151 crore net profit in Q3
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Yes Bank reports ₹151 crore net profit in Q3

The bank, which had reported a loss a year ago, said loans of ₹8,322 crore to a mix of retail, corporate, and small businesses have not been classified as bad loans in line with a Supreme Court order. Of this, debt recast has been invoked on loans of ₹1,264 crore

Yes Bank was placed under a moratorium on Thursday evening, with the RBI capping deposit withdrawals at ₹50,000 per account for a month and superseding its board (Photo: Ramesh Pathania/Mint)Premium
Yes Bank was placed under a moratorium on Thursday evening, with the RBI capping deposit withdrawals at 50,000 per account for a month and superseding its board (Photo: Ramesh Pathania/Mint)

Mumbai: Yes Bank Ltd on Friday reported a net profit of 150.7 crore for the quarter ended 31 December on account of higher net interest income and lower provisions. The bank had reported a loss of 18,560 crore in the same quarter last year.

Its net interest income (NII), the difference between interest earned and expended, stood at 2,560 crore, up 29.7%. It was aided by net interest margin (NIM), an important metric of profitability, of 3.4%, which was 30 basis points (bps) higher sequentially. Provisions fell 91% on a year-on-year (y-o-y) basis to 2,199 crore, though higher by 85% sequentially.

Asset quality showed an improvement, but like its peers, bad loan recognition was halted because of a Supreme Court order in September. Gross non-performing assets as a percentage of total loans declined 351 bps y-o-y to 15.36%.

The bank said loans of 8,322 crore to a mix of retail, corporate, and small businesses have not been classified as bad loans in line with the apex court order. Of this, debt recast has been invoked on loans of 1,264 crore.

On the operations side, the bank’s other income, which includes core fee income, rose 91% to 1,197 crore in the three months to December.

The bank’s loan book shrank 9% y-o-y to 1.69 trillion as on 31 December. Its total deposits were down 12% y-o-y to 1.46 trillion. The current and savings account ratio dropped to 26% of total deposits compared to 32.1% in the same quarter last year.

On Friday, shares of Yes Bank lost 1.45% to close at 17 apiece, while the benchmark Sensex index lost 1.5% to close at 48,878.54 points.

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ABOUT THE AUTHOR
Shayan Ghosh
Shayan Ghosh is a national editor at Mint reporting on traditional banks and shadow banks. He has over 12 years of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
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Published: 22 Jan 2021, 05:11 PM IST
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