YES Bank posts Rs 129-crore profit; net interest income rises 3.4%

Private sector lender YES Bank’s net profit rose sequentially to Rs 129 crore in the second quarter ended September 30 this year from Rs 45 crore in the first quarter ended June 30. The bank had posted a loss of Rs 600 crore in Q2 of the previous financial year.

Net interest income (NII) rose 3.4 per cent sequentially to Rs 1,973 crore in Q2 from Rs 1,908 crore in the previous quarter. On year-on-year (YoY) basis, NII was down by 9.7 per cent from the base of Rs 2,186 crore in the second quarter of the previous year.

Net interest margin (NIM) rose marginally to 3.1 per cent in Q2 from 3 per cent in the June quarter. NIM was at 2.7 per cent in Q2 of the previous year.

Non-interest income was up 13.9 per cent to Rs 707 crore in Q2 from Rs 621 crore in Q1. It was down 25.3 per cent on a YoY basis from Rs 946 crore in the September quarter of FY20.

Its stock closed 4.95 per cent higher at Rs 13.35 per share on the BSE. The lender is an associate of the State Bank of India.

YES Bank’s provisions rose 9.3 per cent sequentially in Q2 to Rs 1,187 crore. But they were down 11.1 per cent over the same quarter of 2019. It made Covid provisions of Rs 1,038 crore in Q2, taking cumulatively provisions at Rs 1,918 crore.

Its asset quality improved marginally as gross non-performing assets (GNPAs) stood at 16.9 per cent in Q2 from 17.3 per cent in Q1. Net NPAs have also come down 25 bps to 4.71 per cent.

Its provision coverage ratio stood at 75.7 per cent in Q2. The advances aggregating Rs 2,391 crore have not been classified as NPAs due to the Supreme Court’s interim order. And, the total overdue exposure (greater than 30 days) is Rs 6,716 crore.

The bank expects to disburse Rs 10,000 crore worth of loans to MSMEs and the retail segment in the current quarter ending December 2020, said its managing director and chief executive Prashant Kumar.