Sequentially, Yes Bank’s profit declined by 66 percent during the December 2022 quarter (Representative image: Reuters)
Yes Bank’s net profit in the third quarter of fiscal year 2022-23 dropped by 80 percent on-year to Rs 52 crore, as per the financial results declared by the private lender on January 21. The net profit in Q2 FY22 was Rs 266 crore.
Quarter-on-quarter, the net profit decreased by 66 percent, as it had came in at Rs 153 crore for the three-month period ending on September 30, 2022. The net profit in Q3 FY23 was adversely impacted by “due to ageing related provisions”, Yes Bank informed the stock exchanges.
The bank’s net interest income, however, increased from Rs 1,764 crore in the year-ago period to Rs 1,970.6 crore in Q3 FY23, marking a 11.7 percent jump. Sequentially, the NII was largely flat, as it stood at Rs 1,991 crore in the previous quarter.
The non-interest income for the December 2022 quarter came in at Rs 1,143 crore, which is 55.8 percent higher as against Rs 734 crore in the year-ago period, and 24.3 percent up as compared to Rs 920 crore in the previous quarter.
The total net income, combining NII and non-interest income, stood at Rs 3,114 in Q3 FY23, which is 24 percent higher YoY and 7 percent up QoQ.
Yes Bank said it has recorded a “sustained improvement” in non-performing asset ratios. The gross non-performing performing asset (GNPA) ratio stood at 2 percent in December quarter, as against 14.7 percent the year-ago period. The NNPA ratio came down to 1 percent, as compared to 5.3 percent in Q2 FY23.
“With successful transfer of stressed Assets to the JC Flowers ARC, the GNPA and NNPA Ratios have now declined to 2% and 1% respectively which is the lowest since Q3FY19,” Yes Bank MD and CEO Prashant Kumar said.
The bank’s operating expenses in Q3 FY23 came in at Rs 2,200 crore, which is 24.5 percent up YoY, a press release noted.
The cost to income ratio improved to 70.7 percent in Q3 FY23 from 72.8 percent in Q2 FY23, “led by slower opex growth in comparison to income growth”, it added.
The bank’s balance sheet during the quarter under review grew 12.9 percent YoY and 2.8 percent QoQ to Rs 3,43,798 crore. The total deposits stood at Rs 2,13,608 crore, up 15.9 percent YoY and 6.8 percent QoQ.
Net advances during the quarter stood at Rs 1,94,573 crore, which is up 10.4 percent as against the year-ago period and 1.2 percent higher sequentially.
The bank recorded new sanctions and disbursements of Rs 27,311 crore in Q3 FY23. This included disbursements of Rs 12,667 crore towards the the gross retail assets category, Rs 806 crore for rural section, Rs 6,104 crore for SME and nearly Rs 7,724 crore for wholesale banking.
The lender, during the quarter, also raised Rs 8,900 crore from private equity players Carlyle and Advent Group. “The successful capital raise has aided in significant expansion in our capital base, and post full consummation, our CETI Ratio will reach an extremely comfortable level,” Kumar said.