YES Bank Q2 results: Profit Rs 129 crore, provisions down 11%

Private sector lender YES Bank on Friday reported net profit of Rs 129 crore for the second quarter ended September 30, 2020, as compared to net loss of Rs 600 crore in Q2 FY20. On the quarter-on-quarter (QoQ), profit jumped 2.8 times from Rs 45.44 crore during June quarter of 2020. The bank reported improvement in asset quality and decline in provisions during September quarter of the current fiscal.

Net interest income (NII), the difference between interest earned and interest expended, fell by 9.7 per cent to Rs 1,973.4 crore compared to Rs 2,186 crore in Q2 FY20. Net interest margin was up by 10 basis points QoQ to 3.1 per cent.

Non-interest income, derived primarily from fees including deposit and transaction fees, for Q2 FY21 was at Rs 707 crore, grew 13.9 per cent on quarterly basis. The bank witnessed strong bounce across transactional and granular fee streams.

The operating profit decreased to Rs 1,350.91 crore during the September quarter as compared to Rs 1,436.86 crore in the year-ago period.

YES Bank's provisions and contingencies declined 11.2 per cent to Rs 1,187 crore from Rs 1,336.25 crore in the year ago period. However, on sequential basis, it increased by 9.2 per cent from Rs 1083.16 crore. The provision coverage ratio improved to 75.7 per cent from 75.1 percent in Q1 FY21.

On asset quality front, YES Bank's gross non-performing assets (NPAs) ratio, as a percentage of gross advances, declined to 16.9 per cent against 17.3 per cent in Q1 FY21. Net NPA ratio also fell to 4.71 per cent as compared to 4.96 per cent in the June quarter of this fiscal. The GNPAs and NNPAs, however, remained higher compared to 7.39 per cent and 4.35 per cent, respectively, in the year ago period.

In absolute terms, the bank's Gross NPA stood at Rs 32,344.36 crore and Net NPA was at Rs 7,868.13 crore as on September 30, 2020. 

YES Bank's deposits grew 15.7 per cent QoQ to Rs 1,35,185 crore, net advances was up 1.5 per cent QoQ at Rs 1,66,923 crore.

Ahead of Q2 results, shares of YES Bank ended 4.95 per cent higher at Rs 13.35, against the previous closing price of Rs 12.72 on the BSE.

Also Read: YES Bank Q1 results: Profit plunges 60% to Rs 45 crore; provisions at Rs 1,087 crore