Private sector lender Yes Bank has reported profit at Rs 129.4 crore for September ended quarter 2020, against loss of Rs 600 crore in year-ago period.
In the quarter ended June 2020, it had reported Rs 45.44 crore profit under the new management lead by Prashant Kumar, MD & CEO of the bank.
But net interest income – difference between interest earned and interest expended – declined 9.7 percent to Rs 1,973.4 crore, from Rs 2,186 crore in corresponding period last fiscal. NII in June quarter was at Rs 1,908 crore.
Earnings beat analysts' expectations. The loss was estimated at Rs 306.8 crore and net interest income at Rs 1,841.8 crore for the quarter, as per the average of estimates of analysts polled by CNBC-TV18.
Yes Bank said net advances at Rs 1,66,923 crore grew 1.5 percent QoQ, with strong pickup in retail disbursements at Rs 3,764 crore (up from Rs 424 crore last quarter).
The deposits increased substantially 15.7 percent sequentially to Rs 1,35,815 crore, it added.
Provisions and contingencies for the September quarter stood at Rs 1,187 crore, declining 11.2 percent compared to year-ago period but increased 9.2 percent sequentially.
"Total step up in provisioning of Rs 1,600 crore consisted Rs 1,038 crore towards COVID-19 related provisioning and balance predominantly towards non-performing investments," Yes Bank said, adding the total COVID-19 related provision stepped up to Rs 1,918 crore, which was 1.15 percent of advances.
The provision coverage ratio improved to 75.7 percent in September quarter, from 75.1 percent in June quarter.
The gross non-performing assets as a percentage of gross advances improved 40 bps QoQ to 16.90 percent and net NPAs as a percentage of net advances declined 25 bps QoQ to 4.71 percent in September quarter.
Non-interest income fell 25.3 percent year-on-year to Rs 706.75 crore in September quarter, but grew by 13.9 percent sequentially as the strong bounce back was seen across transactional and granular fee streams, the bank said in its BSE filing.
Pre-provision operating profit for the quarter at Rs 1,360.03 crore declined 6.7 percent compared to year-ago period, but it was up 18.6 percent quarter-on-quarter.
Yes Bank said the cost to income ratio at 49.3 percent was lowest in last 5 quarters.
The stock has not seen major movement in last two months, in fact it has been rangebound. But it plunged 41 percent in current financial year and 49 percent during September quarter.
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The shareholding patterns of September-ended quarter and July indicated that retail investors, HNIs and corporates increased their stake in Yes Bank, but mutual funds and foreign portfolio investors reduced their shareholding.