Yes Bank Q1 Results: SBI-controlled Yes Bank on Saturday reported a 10 per cent rise in net profit to Rs 343 crore in the June 2023 quarter, aided by a decline in bad loans. The Mumbai-based private sector lender had posted a net profit of Rs 311 crore in the year-ago period.

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The bank, majority owned by other lenders now, reported close to a 69.2 per cent jump in profitability sequentially, its chief executive and managing director Prashant Kumar told reporters on an earnings call.

Its total income in the first quarter of the current fiscal rose to Rs 7,584 crore from Rs 5,876 crore a year ago, Yes Bank said in a regulatory filing.

Interest earned by the bank improved to Rs 6,443 crore over Rs 5,135 crore in June 2022.

Its asset quality showed substantial improvement as gross non-performing assets (NPAs) declined to 2 per cent of gross advances at the end of the June quarter from 13.4 per cent a year ago.

Similarly, net NPAs or bad loans declined to 1 per cent against 4.2 per cent in the year-ago period.

Resolution momentum continues to be strong, with total recoveries and upgrades for Q1FY24 at Rs 1,201 crore, it said.

The key net interest income rose 8.1 per cent to Rs 2,000 crore during the quarter, while the net interest margin moved up by 10 bps to 2.5 per cent due to the repricing of loans but the repricing of deposits added 100 bps to this cost of funds, Kumar said and guided towards more pressure in the ongoing quarter on this front.

Non-interest income soared 54 per cent to Rs 1,141 crore year-on-year and 13.7 per cent quarter-on-quarter.

Advances grew 10 per cent, of which retail advances jumped 31.3 per cent and the SME book rose 24.1 per cent and the mid-corporate book 28.9 per cent, while the large corporate book contracted by 29 per cent, taking the new sanctions/disbursement to Rs 24,730 crore.

The capital adequacy ratio of the bank also improved to 18.2 per cent compared to 17.5 per cent at the end of June 2022.