Yes Bank reported a net profit of Rs 129.4 crore in the second quarter of fiscal 2021 as against a net loss of Rs 600 crore in the same period last fiscal.
Net Interest Income (NII) during Q2FY21 fell 9.7 percent to Rs 1,973 crore from Rs 2,186 crore, YoY. On a sequential basis, NII grew 3.4 percent aided by a higher net interest margin at 3.1 percent, up 10 bps, QoQ.
Earnings beat CNBC-TV18 analysts’ expectations as it had estimated a loss of Rs 306.8 crore and NII of 1,841.8 crore.
Non-Interest income for Q2FY21 was at Rs 707 crore. The bank said it saw strong bounce back across transactional and granular fee streams.
Asset quality in Q2FY21 improved as gross non-performing assets (NPA) declined 1.1 percent to Rs 32,344.36 crore from Rs 32,702.70 crore and net NPA fell 3.5 percent to Rs 7,868.13 crore from Rs 8,157.50 crore, QoQ.
Gross NPA as a percentage of gross advances fell decreased by 40 bps to 16.9 percent from 17.3 percent in the last quarter and net NPA dropped by 25 bps to 4.71 percent from 4.96 percent.
Net Advances at Rs 1,66,923 crore grew 1.5 percent QoQ. Strong pickup was seen in retail disbursements at Rs 3,764 crores, up from Rs 424 crore last quarter.
Prashant Kumar, CEO, Yes Bank CEO said that the bank saw tepid 1.5 percent advances growth as the bank was being careful in increasing quality book only.
The deposits increased substantially 15.7 percent sequentially to Rs 1,35,815 crore.
Provisions and contingencies for the September quarter fell 11.2 percent YoY to Rs 1,187 crore. It rose 9.2 percent sequentially.
“Total step up in provisioning of Rs 1,600 crore consisted Rs 1,038 crore towards COVID-19 related provisioning and balance predominantly towards non-performing investments,” Yes Bank said in a regulatory filing adding the total COVID-19 related provision stepped up to Rs 1,918 crore, which was 1.15 percent of advances.
Liquidity Coverage Ratio as on September 30, 2020, was at 107.3 percent. CET I ratio at 13.5 percent and Total CRAR at 19.9 percent.
“We are continuously meeting all regulatory ratios on liquidity and capital. We hope to conclude the sale of AMC business by end of the financial year,” said Kumar.
The bank is undertaking cost reductions across the spectrum with digitization, branch network, real estate costs, etc.
Yes Bank expects restructuring pipeline to only be out of Rs 9,000 crore loan book including SMA and moratorium accounts.
“Rs 2,391 crore of loans would have slipped into NPA if not for the standstill orders from Supreme Court. Most of the slippages came from the corporate book including certain sectors like real estate,” Kumar said.
He further informed that the bank’s focus would be to get more CASA deposits going forward.
On Friday, the shares of Yes Bank ended at a 5 percent upper circuit at Rs 13.35 on the BSE.