Yes Bank Q3 Results: Net Profit Falls 81% On Higher Provisions
Yes Bank net profit drops on higher provisions against ageing bad loans
Private lender Yes Bank Ltd.'s net profit fell in the third quarter on higher provisions against older bad loans.
Net profit for the quarter ended December stood at Rs 51.5 crore, down 80.7% year-on-year from Rs 266 crore a year earlier, according to its filing.
Net interest income, or core income, for the bank rose 12% from a year earlier to Rs 1,971 crore. Other income, too, rose to Rs 1,143 crore, up 56% year-on-year.
The bank saw its gross non-performing asset ratio fall sharply to 2.02% in the October-December quarter, compared with 12.9% in the second quarter. The bad loans fell owing to a one-time sale of over Rs 43,000 crore worth of assets to JC Flowers Asset Reconstruction Co.
Net NPA ratio improved 257 basis points sequentially to 1.03% as of Dec. 31.
Provisions for the quarter rose to Rs 844.8 crore, up 125% year-on-year. The rise in provisions were due to setting aside against ageing bad loans.
During the October-December quarter, the bank added fresh bad loans worth Rs 1,610 crore, which included Rs 962 crore worth of corporate loans. The bank recovered Rs 7,440 crore during the quarter, while loans worth Rs 224 crore were upgraded.
Yes Bank wrote off Rs 17,462 crore worth of bad loans in the three months ended Dec. 31. Excluding the JC Flowers transaction, loans worth Rs 800 crore were recovered, while Rs 500 crore were written off during the quarter.
Yes Bank's net advances rose 10% year-on-year to Rs 1.94 lakh crore. Retail loans rose 41% from last year to Rs 83,769 crore, while mid-corporate loans rose 31% to Rs 24,730 crore. Large corporate loans fell 26% from last year and stood at Rs 55,829 crore.
Total deposits for the bank rose 16% from a year ago to Rs 2.13 lakh crore. Low-cost current account savings account deposits were up 14% and stood at Rs 63,927 crore. CASA ratio stood at 29.9%, compared with 30.4% last year.