YES Bank share rises 5% after lender reports Rs 129 crore profit in Q2

YES Bank share rose 5% in early trade today after the private sector lender reported profit for the quarter ended September against loss in corresponding quarter of previous fiscal. Share of YES Bank opened 5% higher at Rs 14.01 against previous close of Rs 13.35 on BSE. Later, the stock pared gains and was trading 1.78% higher at Rs 13.58.

YES Bank share has gained 5.66% in the last 2 days.

The banking stock trades higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.  

The share has lost 74% during one year and fallen 71.12% since the beginning of this year.

However, in a week, the share has gained 5%.

The lender turned profitable in Q2 with net profit of Rs 129 crore against net loss of Rs 600 crore in Q2 FY20.

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

On a quarter-on-quarter (QoQ), profit jumped 183% against Rs 45.44 crore in Q1 of current fiscal. Asset quality improved and amid decline in provisions during September quarter of the current fiscal.

YES Bank set aside Rs 1920 crore as Covid-related provisions. The lender's provisions and contingencies fell 11.2 per cent to Rs 1,187 crore from Rs 1,336.25 crore in the year ago period. However, on sequential basis, they rose 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.

Deposits have risen by nearly 30% to  Rs 1.36 lakh crore in the six months ended September.

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.