Yes Bank reported its Q3 result
YES Bank Q3 net profit surges 77% to Rs 266 cr on lower provisions

Yes Bank Q1 results: Net profit soars 355% to ₹207 cr, NII at ₹1,402 crore
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Yes, Bank Limited today reported a Net Interest Income (NII) of Rs 1,764 crore, up 16 percent quarter-on-quarter, while its Net Interest Margin grew by 2.4 percent QoQ. Up 25 basis points aided by a roughly 30 basis points reduction in the cost of deposits, at 4.9 percent. The bank also reported a record Retail Fee income of Rs 447 crore.

The bank reported a 31 per cent YoY drop in net interest income (NII) at Rs 1,764 crore from Rs 2,560 crore in the same quarter last year. Net interest margin (NIM) for the quarter came in at 2.4 per cent compared with 2.2 per cent in the September quarter and 3.4 per cent in the year-ago quarter.

Image: BSE

Financial Highlights

Private sector lender YES Bank’s net profit rose by 77 per cent at Rs 266 crore for the third quarter ended December 2021 (Q3FY22) predominantly on reduction in provisions.

Explaining the drop in NII on a YoY basis, bank executives, in a media call. They said the bank had not tagged accounts as non-performing assets Q3FY21 in compliance with Supreme Court order and booked income. After vacation of stay, recognition of NPAs began and income was reversed in the fourth quarter (Q4FY21), the lender said.

Its net interest margin (NIM) declined at 2.4 per cent in Q3FY22 from 3.4 per cent in Q3FY21. Sequentially, NIM rose from 2.2 per cent in Q2FY22.

The non-interest income declined by 32.5 per cent on a YoY basis to Rs 734 crore in Q3FY22 from Rs 1,087 crore in Q3FY21. Sequentially, it declined by 5.7 per cent from Rs 778 crore in the quarter ended September 2021.

Its gross advances grew by 3.8 percent to Rs 1.76 trillion in Q3FY22 as against Rs 1.69 trillion in Q3FY21. The bank has lowered the guidance for credit growth in FY22 to 10 per cent from an earlier estimate of 15 per cent.

The cost of funds for the bank came in at 5.1 per cent against 5.4 per cent in the preceding quarter and 6.1 per cent in the same period last year.

The gross non-performing asset (GNPA) ratio improved to 14.7 per cent sequentially compared with 15 per cent in the September quarter. It was led by lower slippages at Rs 978 crore (versus Rs 1,783 crore in Q2FY22).

Provisions and contingencies fell 82% to Rs 375 crore. Sequentially they dipped 0.7%. Fresh slippages were significantly lower at Rs 978 crore against Rs 1783 crore in the previous quarter. Recoveries and upgrades for the quarter in review stood at Rs 610 crore and Rs 573 crore respectively.

As a percentage of total loans, gross non-performing assets (NPAs) improved to 14.7% as compared to 15% in the previous quarter and 15.4% a year earlier.

Net NPAs declined marginally to 5.3% of total loans compared to 5.5% in the previous quarter. However, they increased from four percent a year earlier.

Yes, Bank’s resolution momentum has continued with 610 crores of cash recoveries and 573 crores of upgrades during Q3 FY22. The balance sheet also stayed above 3 lakh crore for the first time since Sept 2019, up 6 per cent Q-o-Q.

Meanwhile, YES Bank stock closed at 13.85, up 0.050 or 0.36 per cent, on the NSE on Friday.