Private sector lender Yes Bank on January 21 reported a sharp drop in its net profit during the October-December quarter due to ageing provisions.
Here are the top five takeaways from the lender's Q3FY23 earnings:
Net profit
The private lender has reported an 80.7 percent on-year and 66.3 percent on-quarter drop in its profit after tax (PAT) during the December quarter.
The bank reported a net profit of just Rs 52 crore, as compared to Rs 266 crore reported in the same period last year. In the previous quarter, the lender had reported a PAT worth Rs 153 crore.
Brokerage firm Emkay had estimated the bank to report a net profit of Rs 289.6 crore in the December quarter.
Higher provisions
During the reporting quarter, the private lender has done higher provisions on their stressed assets.
As per a press release, the bank has done a provision of Rs 845 crore, up 125.5 percent on-year and 44.9 percent on-quarter.
The lender had done provisions of Rs 583 crore in the previous quarter and Rs 375 crore in the third quarter in 2021.
Also read: Yes Bank Q3 results: Net profit slides 80% YoY to Rs 52 crore, NII up 11.7%
Advances and deposit
The advances of the bank have registered a growth of 10.4 percent on-year to Rs 1.95 lakh crore. On a sequential basis, advances increased by just 1.2 percent.
Advances as on December 31, 2021, were Rs 1.76 lakh crore and Rs 1.92 lakh crore on September 30, 2022.
On the deposits front, the lender has seen a sharp rise of 15.9 percent on-year and 6.8 percent on-quarter to Rs 2.14 lakh crore.
Net interest income
The net interest income of the bank rose 11.7 percent on-year to Rs 1,971 crore. However, on a sequential basis, Yes Bank saw a decline in net interest income of 1 percent.
Net interest margins of the bank fell to 2.5 percent in reporting quarter from 2.4 percent reported in the corresponding quarter of the previous year.
Asset quality
The gross non-performing assets (NPA) ratio has improved to 2 percent in December quarter, as compared to 12.9 percent in the previous quarter.
In the December quarter in the financial year 2021-22, gross NPA was 14.7 percent.
Meanwhile, the net NPA ratio was at 1 percent, as compared to 3.6 percent in Q2FY23 and 5.3 percent in Q3FY22.
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