Yes Bank reports 50% YoY profit

Mumbai, Jul 23: Private sector lender Yes Bank on July 23 reported a 50.17 percent year-on-year (YoY) growth in profit after tax (PAT) at Rs 310.63 crore compared with Rs 206.84 crore in the same quarter last year, with a significant fall in bad loan provisions and higher net interest income.

 

 

 

Net interest income (NII) for the quarter ended June rose 32 percent YoY to Rs 1,850 crore, with 14 percent YoY credit growth and an 18 percent increase in deposits, the bank said in its BSE filing.

 

 

 

Net interest margin (NIM) for the quarter came in at 2.4 percent, up nearly 30 bps YoY, the bank added. Net advances for the quarter came in at Rs 1,86,367 crore, with retail & corporate mix at 62 percent and 38 percent, respectively, while deposits increased by 18 percent YoY to Rs 1,93,241 crore, with total balance sheet growth at 17 percent YoY, the bank said. Provisions for bad loans for the quarter at Rs 175 crore declined 62 percent YoY and 36 percent QoQ, aided by lower slippages that came in at Rs 1,072 crore against Rs 2,233 crore in the corresponding quarter of last fiscal. Gross non-performing assets as a percentage of gross advances for the quarter fell 50 bps QoQ to 13.4 percent, and net NPAs at 4.2 percent dropped 30 bps sequentially. Yes Bank said the resolution momentum continued in the June quarter with total recoveries & upgrades for Q1FY23 at Rs 1,532 crore, in line with the annual guidance of Rs 5,000 crore. Non-interest income (other income) for the June quarter at Rs 781 crore fell by 10.1 percent due to lower income from forex, debt capital markets & securities segment, but non-interest income adjusted for unrealized and realized gain on investments for Q1FY23 grew 35 percent YoY.

 

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Reported operating profit for the quarter at Rs 590 crore fell by 20 percent as operating expenses rose by 33 percent, but the bank said normalized operating profit, adjusted for unrealized and realized gain on investments, grew 32 percent YoY. Yes Bank shares gained nearly 3 percent in the previous session (July 22) to close at Rs 14.71 on the BSE.