We expect 20 bps expansion in NIM by year end, says YES Bank CEO Prashant Kumar

YES Bank MD & CEO Prashant Kumar

YES Bank’s Chief Executive Officer and Managing Director Prashant Kumar on October 21 said the bank is expecting at least 20 basis points (Bps) expansion in Net Interest Margins by the end of this financial year.

“What we believe to be the end of the margin compression and going forward margin expansion is expected. We expect our NIMs will expand by 20 bps by end of this fiscal,” Kumar said on an earning concall.

In the reporting quarter, the private sector lender reported a 30 bps on-year and 20 bps on quarter compression on NIM, according to the press release of the bank.

Also Read: YES Bank Q2 earnings : Net profit rises over 47% to Rs 225.21 cr

The investor presentation showed that in the second quarter of the current financial year NIM of the bank stood at 2.3 percent, as compared to 2.6 percent in a year ago period and 2.5 percent in a quarter ago period.

Whereas, the net interest income (NII) of the bank fell 3.3 percent on-year to Rs 1,925 crore. In a similar quarter last year, the bank had reported NII at Rs 1,991 crore and Rs 2,000 crore in the first quarter of this fiscal.

YES Bank on October 21 reported a 47.4 percent rise in its net profit to Rs 225.21 crore in the second quarter of the current financial year. In the previous quarter last year, net profit of the bank stood at Rs 152.82 crore.

On sequential basis, net profit falls over 34 percent.

The asset quality of the bank in the reporting quarter improved, with gross non-performing asset (NPA) ratio stood at 2 percent, and Net NPA ratio stood at 0.9 percent.

In absolute terms, gross NPA stood at Rs 4319.03 crore as on September 30, and net NPA stood at Rs 27419.11 crore as on September 30.

In the reporting quarter, provisions and contingencies fell 14.1 percent on-year to Rs 500.38 crore. In the similar period last year, it stood at Rs 582.81 crore.