Yes Bank’s provisions fell 39% yo-y to Rs 1,087 crore and its provision coverage ratio (PCR) improved to 75.1% from 73.8% at the end of March.
Private-sector lender Yes Bank’s net profit fell 60% year-on-year (y-o-y) to Rs 45 crore in the June quarter, owing to a 33% drop in total income on a y-o-y basis to Rs 6,107 crore. Non-interest income declined 51% y-o-y to Rs 621 crore.
The bank’s management refused to share any details on its moratorium book. Prashant Kumar, managing director & CEO, Yes Bank, said, “It is very difficult to give a specific number in terms of as of now how many customers are availing the moratorium and I would not like to mislead anybody by giving this number. But, definitely we are seeing positive improvements happening on this side.”
Kumar did share some perspectives on the repayment history of borrowers under moratorium. He said that those who had availed of the moratorium were not necessarily going to slip.
“Ninety-one percent of our customers who have availed the moratorium on the retail side were never delinquent for more than 30 days in the last 12 months. That shows the behaviour of the customers in their past dealings with the bank,” Kumar said, adding that 70% of the collections on the retail side have resumed.
“On the credit card side, 90% of the normal collections are happening. On the MSME piece 85% of our customers were never delinquent for more than 30 days in the last 12 months,” he said.
Advances, as on June 30, were at Rs 1.64 lakh crore, down 30% on a y-o-y basis. Retail advances accounted for 23.4% of the loan book at the end of June 2020, as against 18% a year ago. Deposits stood at Rs 1.17 lakh crore at the end of June, up 11.4% sequentially, even as they fell 48% y-o-y. The current account savings account (CASA) ratio stood at 25.8% in Q1FY21, lower than 30.2% a year ago. As a result of the growth in deposits, Yes Bank was able to meet its liquidity coverage ratio (LCR) requirement and also return 50% of the borrowing it had received from the Reserve Bank of India, Kumar said. The bank’s net interest margin (NIM), a key measure of profitability, rose 110 basis points (bps) sequentially to 3%.
Yes Bank’s provisions fell 39% yo-y to Rs 1,087 crore and its provision coverage ratio (PCR) improved to 75.1% from 73.8% at the end of March. The standard advances provisions include Rs 642 crore worth of Covid provisions made during Q1, taking the cumulative provisions for Covid to Rs 880 crore.
The bank recognised slippages of Rs 45 crore during Q1FY21, while recoveries and upgrades were to the tune of Rs 160 crore. Loans worth Rs 60 crore were written off. Yes Bank put in a mixed performance on the asset quality front in Q1, with the GNPA ratio rising 50 bps sequentially to 17.3%. The bank attributed the sequential increase in the gross NPA ratio to a decrease in advances due to sell-downs and repayments as well as a lack of fresh disbursements. The net NPA ratio fell seven bps to 4.96%.
The capital adequacy ratio of Yes Bank as per Basel III, stood at 8.6% as on June 30 and this is set to rise to 20% after accounting for the proceeds from its recently-concluded capital-raise. The common equity tier-I (CET-I) ratio was at 6.5% at the end of June and this will rise to 13.4% after the capital infusion.
Yes Bank’s shares on the BSE ended 3.25% lower than their previous close at Rs 11.90 on Tuesday. The results were released after the close of trade.