YES Bank reported a net profit of ₹Rs 129.37 crore for the quarter ended September 30. The private lender recorded a loss of ₹600.08 crore in the corresponding quarter last year.
The Financial Margin (INI) increases 3.4% quarter-on-quarter to ₹1,973 million rupees. The net interest margin stood at 3.1% in the second quarter of fiscal year 21 compared to 2.7% last year. The cost-income ratio was reduced to 49.30% from 53.40%.
The bank’s gross non-performing assets stood at 16.30% compared to 16.8% in the March quarter and 5.01% in the same quarter last year. YES Bank’s net NPA was 4.71%, compared to 4.96% a quarter ago and 2.91% in the same quarter last year.
Provisions decreased by 11.10% year-on-year to ₹1,187 crore plus ₹1,336.25 crore for the corresponding quarter of last year.
Net advances in ₹Rs 1.66,923 crore grew 1.5% QoQ, with a strong rebound in retail outlays in ₹Rs 3,764 crore, the bank said. Deposits increased substantially 15.7% sequentially to ₹1,35,815 crore, it added.
“Total increase in the supply of ₹1,600 crore consisted ₹Rs 1,038 crore towards provisioning related to COVID-19 and the balance predominantly towards non-performing investments, “YES Bank said in the regulatory filing.
Operating profit before provisions for the quarter to ₹Rs 1,360.03 crore decreased 6.7% compared to the prior year period, but increased 18.6% QoQ.
YES Bank’s operating expenses decreased 4.5% QoQ and 21.1% YoY for ₹1,320 crore. The bank’s provision coverage ration improved to 75.7% in the September quarter.
YES Bank is targeting a new disbursement of ₹Rs 10 billion in retail and MSMEs, says Prashant Kumar, CEO and CEO of YES Bank.
On March 5, the Reserve Bank of India placed the crisis-hit YES Bank on a moratorium. The banking regulator took control of YES Bank’s board of directors and imposed a withdrawal limit on bank accounts until April 3.
Under the RBI-backed bailout for the troubled lender, State Bank of India acquired up to a 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 at Yes Bank. RBI appointed Prashant Kumar as CEO and CEO of Yes Bank.
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