NPA ratio falls: Yes Bank Q2 profit jumps 74% on lower provisions

Prashant Kumar, MD & CEO, said, “This quarter, we person besides seen a maturation successful the firm and SME segments, station respective quarters of de-growth.”

Yes Bank connected Friday reported a 74% year-on-year summation successful its nett net to Rs 225 crore for the September quarter, helped by a little provisioning load and higher non-interest income.

The bank’s nett involvement income fell 23% YoY to Rs 1,512 crore portion different income roseate 30% to Rs 778 crore. The nett involvement margin, a cardinal measurement of profitability, roseate 10 ground points (bps) sequentially to 2.2%.

Provisions were down 65% astatine Rs 377 crore. Yes Bank made provisions worthy Rs 336 crore against a azygous telecom exposure, understood to beryllium Vodafone Idea, with the aggregate sum moving retired to 10%. The proviso sum ratio fell to 78.9% from 79.3% astatine the extremity of June. The cumulative provisions stood astatine Rs 25,248 crore successful September 2021, down from Rs 26,198 crore astatine the extremity of June.

The advances publication roseate 3.5% YoY to Rs 1.73 lakh crore arsenic connected September 30. Retail and micro, tiny and mean enterprises advances accounted for 54% of the indebtedness book, against 53% a 4th ago. The absorption held connected to its guidance for advances maturation of implicit 15% successful FY22, led by a 20% maturation successful the retail and SME book.

Prashant Kumar, MD & CEO, said, “This quarter, we person besides seen a maturation successful the firm and SME segments, station respective quarters of de-growth.”

Deposits stood astatine Rs 1.77 lakh crore astatine the extremity of September, up 30% YoY. The existent relationship savings relationship (CASA) ratio stood astatine 29.4% successful Q2FY22, up from 24.8% a twelvemonth ago.

The slope saw caller slippages worthy Rs 1,783 crore during Q2, with Rs 750 crore coming from the firm book. The absorption said retail slippages were arsenic a effect of accent related to Covid, and postulation ratio trends are present showing an improvement.

Cash recoveries stood astatine Rs 987 crore and upgrades were to the tune of Rs 969 crore. The gross NPA ratio fell 63 bps sequentially to 14.97% and the nett NPA ratio fell 23 bps to 5.55%. The slope has guided for currency recoveries and upgrades worthy implicit Rs 5,000 crore successful FY22.

The superior adequacy ratio arsenic per Basel III stood astatine 17.6% arsenic connected September 30. The communal equity tier-I (CET-I) ratio was astatine 11.5%.

Shares of Yes Bank’ ended little 4.12% astatine Rs 13.73 connected the BSE.