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Last Updated : Nov 01, 2019 08:51 PM IST | Source: Moneycontrol.com

Yes Bank Q2 result: Higher provisions, DTA lead to Rs 600 cr loss; sharp increase in NPAs

Net interest income during the quarter declined 9.6 percent year-on-year to Rs 2,185.91 crore with 6 percent YoY loan degrowth.

 
 
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Private sector lender Yes Bank posted a loss of Rs 600.08 crore during July-September period, dented by higher provisions and one-time deferred tax assets adjustment with sharp increase in non-performing assets. Lower other income, PPoP and NII also hit earnings.

The bank had reported profit at Rs 964.70 crore in year-ago period and Rs 113.76 crore in June ended quarter.

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"Profit before tax in Q2 stood at Rs 122.19 crore against Rs 1,426.46 crore YoY. PAT impacted by one-time DTA adjustment of around Rs 709 crore, excluding this one-time impact, adjusted PAT at Rs 109 crore," the bank said in its BSE filing.

Net interest income during the quarter declined 9.6 percent year-on-year to Rs 2,185.91 crore, including the impact of around Rs 228 crore due to fresh slippages during the quarter.

Credit and deposits declined 6 percent each YoY while net interest margin also contracted 10bps sequentially and 60bps YoY to 2.7 percent in Q2FY20.

But growth momentum sustained in retail advances with 30 percent YoY growth, now accounting for around 20 percent of advances in comparison to around 14 percent in Q2FY19, the lender said.

CASA ratio improved to 30.8 percent in Q2FY20 against 30.2 percent in Q1FY20, it added.

Asset quality deteriorated further with gross non-performing assets (NPA) as a percentage of gross advances 238bps sequentially to 7.39 percent while net NPA as a percentage of net advances increased 144bps QoQ to 4.35 percent in quarter ended September 2019.

Gross slippages at the end of September quarter remained elevated at Rs 5,945 crore against Rs 6,232 crore in April-June period.

Provisions and contingencies in Q2FY20 increased significantly by 42 percent to Rs 1,336.3 crore compared to year-ago, but declined 25 percent sequentially. Provision coverage ratio remained unchanged at 43.1 percent QoQ during the quarter.

Yes Bank said its non-interest income (other income) in second quarter fell 35.8 percent year-on-year to Rs 945.93 crore and pre-provision operating profit also plunged 38.4 percent YoY to Rs 1,458.44 crore.

Cost to income ratio increased sharply to 53.4 percent in September quarter, against 44.9 percent in June quarter.

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First Published on Nov 1, 2019 05:27 pm
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