YES Bank Q3 results: Profit surges to Rs 151 crore, NII jumps 140%

Private sector lender YES Bank on Friday reported net profit of Rs 151 crore for the third quarter ended December 31, 2020, compared to net loss of Rs 18,560 crore in the year ago period, on back of lower provisions and higher interest income. On the quarter-on-quarter (QoQ), profit jumped 16.5 per cent from Rs 129 crore during September quarter of 2020.

Net interest income (NII), the difference between interest earned and interest expended, jumped by 140.5 per cent to Rs 2,560 crore compared to Rs 1,065 crore in Q3 FY20. Net interest margin improved by 30 basis points QoQ to 3.4 per cent.

Non-interest income, derived primarily from fees including deposit and transaction fees, was at Rs 1,197 crore, registering a growth of 91.4 per cent on yearly basis. The bank witnessed strong bounce across transactional and granular fee streams.

The operating profit stood at Rs 2,286 crore during the December quarter as compared to loss of Rs 6 crore in the year-ago period.

YES Bank's provisions and contingencies declined 91.1 per cent to Rs 2,199 crore from Rs 24,766 crore in the year ago period. On quarterly basis, it rose by 85.3 per cent from Rs 1,187 crore in Q2FY21.

"Total step up in provisioning of Rs 2,935 crore; consists of additional Rs 765 crores towards COVID-19 related provisioning (aggregate at Rs 2,683 crore) and balance majorly towards increasing PCR of both NPA and NPI," the lender said in the regulatory filing.

On asset quality front, YES Bank's gross non-performing assets (NPAs) ratio, as a percentage of gross advances, remained elevated at 15.36 per cent, albeit lower than 18.87 per cent in Q3 FY21. Net NPA ratio also fell to 4.04 per cent as compared to 5.97 per cent in the December quarter of 2019.

In absolute terms, the bank's Gross NPA stood at Rs 2,954.654 crore and Net NPA was at Rs 685.658 crore as on December 31, 2020.  

The bank's total balance sheet size expanded by 18.6 per cent quarter-on-quarter to Rs 260,062 crore in Q3 FY21. Total deposits rose by 7.7 per cent QoQ to Rs 146,233 crore, while CASA ratio improved at around 26 per cent compared to 24.8 per cent at September 2020.

During the quarter under review, the bank entered into collaboration with Salesforce, a global leader in CRM, to build next -gen retail tech platform. It also launched products such as Corporate NetBanking, YES Premia, YES Private Prime, E-Series Debit Card.

Ahead of Q3 results, shares of YES Bank ended Friday's trade at Rs 17, down 1.45 per cent, against previous closing price of Rs 17.25.

Also Read: YES Bank share falls 2% ahead of board meet to raise funds