YES Bank Q2FY22 Results: Profit jumps nearly 75% YoY; asset quality slightly improves sequentially

The private lender YES Bank on Friday reported a positive result on all fronts including asset quality parameters, except for net interest income (NII) that slipped during the July-September quarter of the financial year 2021-22 (Q2FY22). 

The bank reported 74.3 per cent growth in profit to Rs 255.5 crore during Q2FY22 as compared to 129.4 crore during the same quarter a year-ago. While its NII declined by 23.4 per cent to 1512 crore as against 1973.4 crore on a year-on-year (YoY) basis. 

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In the asset quality, YES Bank’s gross and net NPA (non-performing asset) marginally improved to 14.97 per cent and 5.55 per cent during the second quarter, respectively. In the April-June quarter, the lender had posted Gross NPA at 15.60 per cent and Net NPA at 5.78 per cent, as per statement. 

According to the bank’s filing to exchanges, it has made Prudent provisioning of around Rs 336 crore on a single telecom exposure; aggregate coverage at approximately 10 per cent. While resolution momentum continues with Rs 987 crore of cash recoveries and Rs 969 crore of upgrades in Q2FY22. 

Similarly, the net advances came at Rs 172,839 cr up 6 per cent quarter-on-quarter basis, and total deposits stood at Rs 176,672 crore, up 8 per cent sequentially, while CASA (current and savings accounte) growth rate was almost reported 2x of overall deposits during the quarter, the bank said. 

Other Highlights 

• Non-performing asset Provision Coverage Ratio (PCR) stood at 78.9 per cent during the quarter 

• Balance Sheet grew around 6 per cent QoQ with C/D ratio at 97.8 per cent, lower than 100 per cent for the first time since December 2017 

• Pickup in New Business Generation: Retail Disbursements at Rs 8,478 crore, SME Disbursements at Rs 4,576 crore, Wholesale Banking Disbursements at Rs 3,736 crore,  

•Operating expenses at Rs 1,612 crore, up 5 per cent QoQ led by significant pick up in business activity during the quarter.