YES Bank Profits Surge by 55% in December Quarter

YES Bank reported a 55% profit increase to Rs 952 crore in the December quarter, driven by lower provisions. The bank's core net interest income rose by 10.9%, with a gross NPAs ratio improvement to 1.5%. Managing Director Prashant Kumar highlighted cautious loan growth strategies and improved asset quality.

YES Bank, a private sector lender, announced a 55% increase in profit to Rs 952 crore for the December quarter, largely due to a significant decrease in provisions.

In comparison, the bank had reported a net profit of Rs 612 crore during the same period last year and Rs 654 crore in the preceding September quarter.

While core net interest income rose 10.9% to Rs 2,466 crore, aided by an expansion in net interest margin and loan growth, the bank remains cautious on new loans. The lender cited pricing challenges in corporate loans and profitability concerns in home and auto loans as reasons for its conservative loan strategy.

Despite a Rs 155-crore provision related to new labor codes, the bank witnessed a reduction in gross slippages from Rs 1,248 crore to Rs 1,050 crore.

The lender also reported an improvement in its gross non-performing assets ratio by 0.10% to 1.5% and asset quality, with the overall provisions drastically reduced to Rs 21.89 crore compared to Rs 259 crore a year ago.

CEO Prashant Kumar noted the decline in slippages in unsecured loans and a significant portion of loan growth emerging from the commercial banking segment.

Regarding capital adequacy, YES Bank stood at 14.5% with no current plans for raising additional funds.

(With inputs from agencies.)