Private sector lender Yes Bank on October 22 reported a 74.3 percent year-on-year increase in standalone profit at Rs 225.50 crore for the quarter ended September 2021 on a significant fall in provisions and higher other income. Profit in the year-ago period was at Rs 129.37 crore.
The net interest income, the difference between interest earned and interest expended, fell 23.4 percent year-on-year to Rs 1,512.24 crore in Q2FY22, with a 3.5 percent growth in advances and a 30.1 percent in deposits.
Advances for the quarter stood at Rs 1,72,839 crore, up from Rs 1,66,923 crore in Q2FY21, and deposits jumped to Rs 1,76,672 crore from Rs 1,35,815 crore YoY.
Provisions and contingencies fell sharply by 65 percent YoY to Rs 377 crore in September 2021 quarter and the same declined 17.4 percent sequentially.
Asset quality improved with gross non-performing assets (NPAs) as a percentage of gross advances falling to 14.97 percent in Q2FY22, down from 15.60 percent in the previous quarter. Net NPAs also declined to 5.55 percent from 5.78 percent during the period.
Yes Bank in its BSE filing said overdue book (31-90 days bucket) was lower by Rs 6,000 crore sequentially, s of September 2021.
"Fresh slippages were lower QoQ at Rs 1,783 crore, of which corporate slippages at Rs 750 crore in Q2 from Rs 1,258 crore in Q1."
"Resolution momentum continued with Rs 987 crore of cash recoveries and Rs 969 crore of upgrades in Q2FY22. Incremental credit costs on fresh slippages & on a single telecom exposure was significantly offset by provision writebacks and bad debt recoveries," said the bank.
Non-interest income (other income) grew 30.2 percent to Rs 778 crore during the quarter but pre-provision operating profit fell considerably by 45.8 percent to Rs 678 crore compared to a year-ago period.
While addressing a press conference, the management said the bank had almost Rs 1,000 crore exposure to DHFL.
"We expect 15 percent credit growth this year. We have approvals in place to raise up to Rs 10,000 crore but we are yet to take a decision on further capital raising," it said.
On the bad loan book, the management was hopeful of announcing a partner for its proposed asset reconstruction (ARC) business within 60 days.
"We will seek regulatory approval to set up ARC as soon as partner is finalised and we will transfer entire bad loan book to the proposed ARC," it said.
The stock settled at Rs 13.68, down 4.47 percent on the BSE after the earnings annoucement
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