YeS Bank on Thursday reported a year-on-year dip in net profits to Rs 1001.8 crore for the quarter that ended December 2018. In Q3FY18, the private sector bank had posted profits of Rs 1,077 crore. The muted profits in Q3FY19 were the result in part of accelerated provisioning for the exposure to the IL&FS Group. The lender also reported a drop in non-interest income. The stock rallied 9.06% intra-day on Thursday, before settling at `213.85 per share, up 8.4% on the announcement of Ravneet Singh Gill as the new MD and chief executive officer of the bank. Gill, who is CEO, Deutsche Bank, is slated to join Yes Bank on or before March 1. The private sector lender witnessed a 41.2% y-o-y rise in net interest income (NII) to `2,666.4 crore but the non-interest income plunged 37.4% year-on-year to `890.9 crore, owing to, among other factors, realisation of loss on investments and loss on accrual of mark-to-market of interest rate swaps. The bank\u2019s pre-provision profit (PPP) dipped 0.6% y-o-y to `1990.4 crore. The net interest margin (NIM), however, was fairly steady at 3.3%, compared with that at the end of September, 2018. The bank's asset quality took a hit owing to its exposure to the stressed infrastructure conglomerate IL&FS. The gross non-performing assets (NPAs) rose to 2.10% of the loan book sequentially while net NPAs stood at 1.18%. READ ALSO |\u00a0Yes Bank names Deutsche Bank\u2019s Ravneet Gill as new MD, CEO; posts fall in Q3 net profit Excluding the impact of the aggrerate exposure to the stressed infrastructure conglomerate, the gross and net NPAs would have been 1.32% and 0.59%, respectively. The bank's domestic advances rose 40.2% y-o-y to `2,43,885.2 crore at the end of December, of which retail advances grew 82.9% year-on-year to 15.2% of total advances, up from 11.8% as on December 30, 2017. The total domestic deposits grew by 29.7% to almost `222,758.4 crore for Q3FY19. The lender said in a statement it has an aggregate outstanding \u2018funded exposure of `252,973 lakhs as on December 31, 2018 to various companies and SPVs of a stressed infrastructure conglomerate (nil to the parent\/NBFC\/financial services entities).\u2019 Of this, in accordance and compliance with RBI Master Circular on Prudential Norms on Income Recognition, Asset Classification and Provisioning, the lender has \u2018classified `191,301 lakhs of the advances as non-performing with a specific provision of `47,825 lakhs (25%). Further, the bank has prudently made a provision of `9,251 lakhs on outstanding advances of `61,6721 lakhs which has been classified as Standard as per IRAC norms (15% provision). Such provisions on standard advances have been classified under 'other liabilities and provisions'. Additionally the bank has a non-funded based exposure of `8,779 lakhs to this conglomerate.\u201d At the post-earnings press conference, senior group president Rajat Monga, whose name has been recommended for a seat at the board as whole-time director, pending approval of the Reserve Bank of India(RBI), said the portion identified as NPA belongs to exposure to roads and energy verticals of the IL&FS Group while exposure to maritime business of the group is currently identified as standard.