Yes Bank Q2 Results: Net Profit Falls 32% YoY On Higher Provisions

Private sector lender Yes Bank Ltd saw its July-September net profit fall as provisions rose.

The bank's net profit for the quarter stood at Rs 152.82 crore, down 32.2% year-on-year. Analysts polled by Bloomberg estimated a Rs 384 crore net profit for the three months.

Net interest income, or core income, for the bank rose 32% from a year ago and stood at Rs 1,991 crore. Other income too rose 18% year-on-year to Rs 920 crore.

Gross non-performing asset ratio for the bank fell by 56 basis points sequentially to 12.89%. Similarly, net NPA improved to 3.6% as of September 30, compared with 4.7% as of June 30.

During the quarter, the bank reported fresh bad loan additions of Rs 896 crore. Upgrades during the quarter stood at Rs 125 crore, while the bank recovered loans worth Rs 912 crore.

Provisions for the quarter rose 54% year-on-year to Rs 583 crore.

Total advances rose 11.3% from last year and stood at Rs 1.92 lakh crore. While retail advances rose 43% year-on-year to Rs 78,395 crore, corporate advances fell 18% to Rs 65,442 crore.

Total deposits rose to Rs 2 lakh crore, up 13.2% year-on-year. Current account savings account deposits rose 19% from last year to Rs 62,073 crore. As a share of total deposits, CASA deposits stood at 31% as of Sept. 30.

"There will be a challenge in raising further deposits on account of tightening in liquidity in the coming two quarters", Prashant Kumar, MD and CEO of Yes Bank said in the press conference post the results. So far, deposit growth has been higher than the industry average for the bank, he said.

On the rate hikes, issue would be on capability to pass on MCLR linked loans, Kumar said. Currently, while cost of deposits has come down, it will go up, he said, affecting ability to disburse corporate loans. However, that is being well compensated by growth in retail and MSME segments. As such, guidance on loan growth of 15% remains intact, he said.