Moneycontrol
Last Updated : Jan 18, 2018 04:43 PM IST | Source: Moneycontrol.com

Yes Bank Q3 profit rises 22% despite 265% jump in provisions; asset quality improves

Asset quality improved during the quarter as gross non-performing assets (NPA) were lower at 1.72 percent compared to 1.82 percent in previous quarter and net NPAs were also lower at 0.93 percent from 1.04 percent QoQ.


Private sector lender Yes Bank has reported profit growth of 22 percent despite sharp jump in provisions for bad loans, driven by non-interest income, NII and operating income.

Profit for the quarter increased to Rs 1,076.87 crore from Rs 882.63 crore in year-ago, which was in line with estimates.

Net interest income, the difference between interest earned and interest expended, grew by 27 percent year-on-year to Rs 1,888.8 crore for quarter ended December 2017, which missed estimates.

The bank saw robust growth in loan as well as deposits growth.

"Advances grew by 46.5 percent YoY on the back of robust growth in both corporate and retail businesses," Yes Bank said, adding retail banking advances grew by 101.7 percent YoY to

11.8 percent of advances (up from 8.6 percent as on December 2016).

Deposits grew by 29.7 percent YoY to Rs 1,71,731.4 crore, it said.

Net interest margin remained flat at 3.50 percent on year-on-year basis, but contracted 20 basis points sequentially.

Asset quality improved during the quarter as gross non-performing assets (NPA) were lower at 1.72 percent compared to 1.82 percent in year-ago and net NPAs were also lower at 0.93 percent from 1.04 percent YoY.

"Yes Bank's asset quality continues to demonstrate resilience with stable asset quality parameters that includes meaningful repayments from accounts previously observed under RBI RBS review for FY17," Rana Kapoor, Managing Director & CEO said.

In absolute terms, gross NPAs increased 9.3 percent sequentially to Rs 2,974.3 crore and net NPAs rose 3.3 percent to Rs 1,595.1 crore in Q3.

During the quarter, gross slippages were at Rs 494.9 crore (including Rs 245.4 crore slippage from accounts previously classified under SDR, 5:25 and NCLT categories as on September 30, 2017," the bank said.

The total recovery for the quarter was at Rs 228.2 crore while write-offs were at Rs 12.7 crore, it added.

Yes Bank said no additional account was refinanced through 5:25 route during the quarter.

Its exposure to 9 borrowers referred to National Company Law Tribunal (NCLT) was at Rs 1,342.4 crore; of which standard exposure at Rs 75.2 crore and NPA exposure at Rs 1,267 crore.

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Provisions for the quarter stood at Rs 421.3 crore, rising sharply by 265 percent compared to corresponding quarter but falling 5.8 percent on sequential basis.

"Provision coverage ratio improved to 46.4 percent as on December 31, 2017, from 43.3 percent as on September 30, 2017," Yes Bank said.

Profit was estimated at Rs 1,069.4 crore and net interest income at Rs 1,992.8 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Other income (non-interest income) during the quarter spiked 39.9 percent to Rs 1,422.26 crore and operating profit jumped 37.7 percent to Rs 2,001.81 crore compared to year-ago.

The stock price closed at Rs 341.20, down Rs 1.20, or 0.35 percent on the NSE.
First Published on Jan 18, 2018 03:18 pm
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