Yes Bank on Saturday reported a net profit of Rs311 crore for the three months to June, an increase of 50% year-on-year, on the back of a 62% y-o-y drop in provisions, primarily helped by lower slippages. The slippages for the quarter were Rs1,072 crore, compared with Rs2,233 crore in Q1FY22.
The bank’s operating profit in Q1FY23, at Rs590 crore, fell 23.8% y-o-y and 19.5%, sequentially.
The lender reported a 32% y-o-y rise in the net interest income, for the quarter, to Rs1,850 crore but the sequential increase was only 1.7%. While net advances at the end of the quarter stood at Rs1.86 trillion, a y-o-y increase of 14%, sequentially the rise was only 3%. It may be recalled that the June 2021 quarter witnessed the second wave of the pandemic, a time when business activity was badly disrupted.
Yes Bank’s net interest margin (NIM) for the June quarter came in at 2.4%, a rise of nearly 30 bps y-o-y.
The asset quality improved with the gross non-performing assets (NPA) ratio coming in at 13.4% compared with 15.6% in Q1FY22 and 13.9% in Q4FY22.
The lender’s net NPA ratio at the end of June was 4.2% versus 5.8% in Q1FY22 and 4.5% in Q4FY22. Slippages were lower at Rs1,072 crore compared with Rs2,233 crore in Q1FY22.
The bank said it has exited the Reconstruction Scheme with the formation of alternate board, with effect from July 15, having received the approval of shareholders.
The board had recommended the appointment of Prashant Kumar as MD & CEO for three years, subject to approval from the regulator and shareholders.
As has been reported, Yes Bank has signed a binding term sheet with partner JC Flowers to set up an Asset Reconstruction Company (ARC) to sell a pool of nearly Rs48,000 crore of stressed assets.