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Private sector lender YES Bank on Thursday posted a 29 per cent increase in net profit for the fourth quarter ended March 31, 2018, at ₹1,179.4 crore, but also registered higher provisioning for stressed assets.
The net profit for 2017-18 was also robust with a 26.9 per cent growth at ₹4,224.6 crore against ₹3,339.9 crore in 2016-17.
For the fourth quarter of 2017-18, YES Bank’s total income rose 27.8 per cent at ₹7,163.95 crore against ₹5,606.38 crore in the same quarter a year ago.
Its net interest income also increased by 31.4 per cent at ₹2,154.20 crore and non-interest income grew 13 per cent at ₹1,421 crore during the reported quarter.
Net interest margin
The net interest margin – a gauge of profitability – stood at 3.4 per cent in March quarter, marginally lower than 3.6 per cent in the year-ago period.
Its gross non-performing assets improved and fell to 1.28 per cent of gross advances in the fourth quarter of the fiscal at ₹2,626.8 crore. It stood at 1.72 per cent in the third quarter and at 1.52 per cent in the fourth quarter of 2016-17.
The net non-performing assets as a percentage of new advances also eased to 0.64 per cent, or ₹ 1,312.75 crore, in the January to March quarter of 2017-18, down from 0.81 per cent, or ₹1,072.27 crore, in the same period in the previous fiscal.
YES Bank also made a provision of ₹399.60 crore for the quarter ended March 31, which was 29 per cent higher than the ₹309.70 crore it made in the year-ago quarter. On a sequential basis, it, however, declined by 5 per cent.
Provisioning
For 2017-18, YES Bank also made provisions of ₹1,553.80 crore, which was 96 per cent higher than the ₹793.41 crore earmarked for this in 2016-17.
However, Rana Kapoor, Managing Director and CEO, YES Bank, was optimistic and said the bank has been very proactive and expects minimum impact on its balance sheet in the coming year. He added that there is minimal impact of the Reserve Bank of India’s February 12 circular and that there was nil fiscal slippage during the fourth quarter.
About the exposure of ₹319 crore in two accounts of the first list of cases with the National Company Law Tribunal (NCLT), he said the bank expects recovery of 60 to 65 per cent by the second quarter of the fiscal.
In the second list, the bank has an exposure of ₹650 crore spread across seven accounts. “There is adequate provisioning on these exposures with 50 per cent to 60 per cent collectability,” he said, adding that ₹568 crore exposure from three accounts has already been classified as NPA with a provisioning coverage of 43 per cent.
The board also approved the re-appointment of Kapoor as MD and CEO for a period of three years from September 1.
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