Yes Bank's Q2 net profit jumps 74% to Rs 225 cr on lower provisioning for bad loans

Private sector lender Yes Bank on Friday reported a profit after tax of Rs 225 crore for the quarter ended September, an increase of 74.3 percent over the year-ago period, mainly on the back of lower provisioning requirements.

The bank's profit after tax stood at Rs 129 crore in the corresponding quarter of the previous fiscal.

Yes, Bank's Managing Director and CEO Prashant Kumar attributed the rise in profit to better business growth and lower provisioning requirements.

''With lower slippages and better recoveries and upgrades, our provisioning requirement has come down,'' he told reporters.

The bank's Net Interest Income (NII) declined 23.4 percent to Rs 1,512 crore in Q2 FY2022 compared to 1,973 crores in the year-ago period.

The net interest margins dipped to 2.2 percent from 3.1 percent in the same quarter of the previous fiscal.

Gross Non-Performing Assets (NPAs) ratio improved to 15 percent in the latest September quarter from 16.90 percent in the year-ago period. Net NPAs stood at 5.5 percent compared to 4.7 percent in the same period a year ago.

Fresh slippages during the quarter under review stood at Rs 1,783 crore, out of which corporate slippages were to the tune of Rs 750 crore.

During the quarter, cash recoveries were at Rs 987 crore and upgrades at Rs 969 crore. For the full year, the bank has kept a target of Rs 5,000 crore of recoveries and upgrades.

In the case of DHFL, the lender recovered Rs 29 crore as against its total exposure of Rs 1,000 crore, which was a mix of retail and masala bonds, Kumar said.

The bank's provisioning declined by 65 percent to Rs 377 crore in the latest September quarter from Rs 1,078 crore in the year-ago period. The provision coverage ratio stood at 78.9 percent compared to 79.3 percent.

Yes, Bank has also made a prudent provision of Rs 336 crore on a single telecom exposure where its overall coverage, including the valuation adjustment on the bond, is now 10 percent, Kumar said.

In the second quarter, advances grew 3.5 percent to Rs 1,72,839 crore and deposits 30.1 percent to Rs 1,76,672 crore.

''While our retail and medium enterprise loan book has continued to grow over the last few quarters, this quarter we have also seen growth in our corporate and SME loan book,'' Kumar said.

The lender is aiming for a credit growth of 15 percent this fiscal.

On the proposed asset reconstruction company, Kumar said the lender is in the process of finalizing the investors.

''Hopefully, in 60 days, we should be in a position to announce the partnership and then conclude the deal before the end of the financial year,'' he said.

The bank's scrip closed at Rs 13.73 apiece, down 4.12 percent on the BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)