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Yes Bank Q2 Results: Net Profit Up 74% On Lower Provisions – BloombergQuint

Private lender Yes Bank Ltd. saw its net profit rise 74% in the July-September quarter on lower provisions.

Net profit for the second quarter stood at Rs 225.5 crore compared with Rs 129 crore a year ago, according to its exchange filing. Analysts polled by Bloomberg had estimated a net profit of Rs 119.3 crore for the quarter.

Net interest income, or core income, for the bank fell 23% from last year to Rs 1,512 crore.

Non-interest income at Rs 778 crore for the quarter was down 10.5% compared to a year ago.

Asset quality of the bank improved during the quarter, with gross non-performing asset ratio falling to 14.97% as of Sept. 30, from 15.6% as of June 30. Net NPA too fell to 5.55% from 5.78% a quarter earlier.

  • Yes Bank saw gross slippages worth Rs 1,783 crore, including Rs 750-crore corporate loans.

  • The bank recovered loans worth Rs 987 crore, of which recovery from written-off accounts stood at Rs 577 crore.

  • Upgrades during the quarter stood at Rs 969 crore.

  • Loans overdue between 31 and 90 days fell by Rs 6,000 crore quarter-on-quarter to Rs 5,542 crore.

As of Sept. 30, the bank had restructured loans worth Rs 4,622 crore under the Reserve Bank of India’s first Covid window announced in August 2020. Of these, Rs 421 crore worth of loans slipped into the non-performing category, Yes Bank said. Most of the loans restructured under the first window belonged to corporate borrowers.

Under the second Covid restructuring window announced in May this year, the bank recast loans worth Rs 857.6 crore.

Provisions for the quarter stood at Rs 377.4 crore, 65% lower than a year earlier.

Business Growth

The bank saw its advances and deposits grow during the quarter, owing to higher retail business.

  • Outstanding advances rose 3.5% from a year ago to Rs 1.73 lakh crore. On a sequential basis, loans rose by 5.6%.

  • During the quarter, the bank saw gross retail disbursals worth Rs 8,478 crore, the highest ever in the bank’s history.

  • It disbursed loans worth Rs 4,576 crore to small and medium enterprises.

  • Retail and MSME business now accounts for 54% of the bank’s loan book.

  • Disbursals in the wholesale banking department stood at Rs 3,736 crore.

  • Total deposits rose by 30.1% year-on-year to Rs 1.76 lakh crore.

  • Current account savings account deposits rose to 29.4% of total deposits in the second quarter, compared with 27.4% as of June 30.