Yes Bank Q1 Net Up 355% YoY At Rs 207 Cr On Surge In Non-interest Income

Private lender Yes Bank's net profit rose by 355.2 per cent to Rs 207 crore in the first quarter ended June 2021 (Q1FY22) on a rise in non-interest and a sharp dip in provisions.

The bank posted net profit of Rs 45 crore during the same quarter last year (Q1FY21). Sequentially, the bank had booked a loss of Rs 3,788 crore in the quarter ended March 2021 (Q4FY21).

The stock closed flat at Rs 13.07 per share on BSE.

Its net interest (NII) fell by 26.5 per cent in Q1FY22 to Rs1,402 crore from Rs 1,908 crore in Q1FY21. In April-June 2021,the moratorium was in force and bank booked interest income, which was reversed in the fourth quarter (Q4Fy21). Sequentially, NII was up by 42.1 per cent from Rs 987 crore in Q4Fy21.

Net interest margin (NIM) for the reporting quarter declined to 2.1per cent for Q1FY22 from three per cent for Q1FY21. However, sequentially NIM rose from 1.6 per cent in Q4Fy21.

Prashant Kumar, its managing director and chief executive said the bank would close the financial year with NIM of about 2.6 per cent.

chart

Its non-interest was up by 70.2 per cent on YoY basis to Rs 1,056 crore in Q1FY22. Sequentially, it rose by 29.5 per cent from Rs 816 crore in Q4Fy21.

The bank's asset quality profile improved with gross non-performing assets (NPAs) at 15.6 per cent by June 2021 from 17.3 per cent a year-ago. Sequentially, GNPAs rose marginally from 15.41 per ceny in March 2021.

Net rose to 5.78 per cent during the quarter from 4.96 per cent a year ago. Net were at 5.88 per cent in March 2021.

Its provisions fell 40.7 per cent to Rs 644 crore in Q1FY22 from Rs 1,087 crore in Q1FY21. The provisions were at Rs 5,240 crore in Q4Fy21.

The provision coverage ratio (PCR) rose marginally to 79.3 per cent for Q1Fy22 from 79.1 percent a year ago. PCR was 78.6 per cent in March 2021.

The impact of Covid-19 has been factored and going forward the upgrades will be more than slippages, said Prashanth Kumar.

Advances shrank by 0.5 per cent to Rs 1.63 trillion in Q1FY22, while deposits also grew by 39.1 per cent to Rs 1.63 trillion in June 2021. Bank has guided for 15 per cent credit growth with retail & MSMEs segment at 20 per cent and corporate growth of 10 per cent in Fy22.

The bank’s total Capital Adequacy Ratio (CRAR) stood at 17.9 per cent in June 2021 with tier I of 11.6 per cent.

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

RECENT NEWS

Central Banks And The Economic Horizon: Steering Through Uncertaintie

In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more

Transforming Financial Operations With Robotic Process Automation

Author: Ricardo Goulart                           ... Read more

The Role Of Machine Learning In Fraud Detection

        Author: Gerardine Lucero                  &nbsp... Read more

Principles Of Islamic Banking And Finance

When it comes to banking, a significant new contender has entered the ring. The principles of Islamic banking and financ... Read more

The Role Of Central Banks In Global Economy

The role of central banks in global economy is a stimulating topic that requires profound understanding. Commonly, centr... Read more

History Of Banking Evolution In The 21st Century

Throughout time, the banking sector has assumed a central role in the smooth functioning of economies, generating growth... Read more