YES Bank Q2 results: Net profit at ₹129.37 crore; asset quality improves1 min read . Updated: 23 Oct 2020, 05:30 PM IST
- The bank’s gross non-performing assets (NPAs) stood at 16.30% against 17.30% a quarter ago
- The Net Interest Income increased 3.4% quarter-on-quarter to ₹1,973 crore
YES Bank on Friday reported a net profit of ₹129.37 crore for the quarter ended 30 September. The private lender posted a loss of ₹600.08 crore in the corresponding quarter last year.
The Net Interest Income (NII) increased 3.4% quarter-on-quarter to ₹1,973 crore. Net interest margin stood at 3.1% in Q2FY21 against 2.7 per cent last year. Cost to income ratio declined to 49.30% from 53.40%.
The bank’s gross non-performing assets (NPAs) stood at 16.30% as against 16.8% in March quarter and 5.01% in the same quarter last year. YES Bank’s net NPAs came in at 4.71%, compared with 4.96% a quarter ago and 2.91% for same quarter last year.
Provisions declined 11.10% year-on-year to ₹1,187 crore, over ₹1336.25 crore for the corresponding quarter last year.
Net advances at ₹1,66,923 crore grew 1.5% quarter-on-quarter, with strong pickup in retail disbursements at ₹3,764 crore, the bank said. The deposits increased substantially 15.7% sequentially to ₹1,35,815 crore, it added.
"Total step up in provisioning of ₹1,600 crore consisted ₹1,038 crore towards COVID-19 related provisioning and balance predominantly towards non-performing investments," YES Bank said in the regulatory filing.
Pre-provision operating profit for the quarter at ₹1,360.03 crore declined 6.7% compared to year-ago period, but it was up 18.6% quarter-on-quarter.
YES Bank's operating expenses declined 4.5% quarter-on-quarter and 21.1% year-on-year to ₹1,320 crore. Bank's provision coverage ration improved to 75.7% in September quarter.
YES Bank is targeting fresh disbursement of ₹10,000 crore in retail and MSME, says Prashant Kumar, CEO & MD of YES Bank.
On 5 March, the Reserve Bank of India placed the crisis-hit YES Bank under a moratorium. The banking regulator took control of the YES Bank board and imposed a withdrawal limit from the bank accounts till 3 April.
According to RBI-backed rescue for the troubled lender, State Bank of India acquired up to 49% stake in YES Bank. HDFC and ICICI Bank infused ₹1,000 crore each, Axis Bank ₹600 crore and Kotak Mahindra Bank (KMB) Ltd ₹500 crore into Yes Bank. RBI appointed Prashant Kumar as CEO & MD of Yes Bank.