Money & Banking

Yes Bank posts 74% jump in Q2 net profit

Our Bureau Mumbai | Updated on October 22, 2021

Bank looking at legal recourse in Dish TV issue, plans to announce ARC partner in 60 days

Private sector lender Yes Bank’s standalone net profit surged by 74.3 per cent to ₹225.5 crore in the second quarter of the fiscal led by a sharp jump in non-interest income and lower provisions.

The bank’s standalone net profit stood at ₹129.37 crore in the second quarter of last fiscal.

For the quarter-ended September 30, 2021, Yes Bank reported a 23.4 per cent drop in its net interest income to ₹1,512 crore as against ₹1,973 crore a year ago.

Net interest margin stood at 2.2 per cent in the second quarter of the fiscal as against 3.1 per cent in the corresponding period last fiscal. Non-interest income jumped by 30.2 per cent on a year-on-year basis to ₹778 crore during the quarter.

Provisions were 65 per cent lower at ₹377 crore in the second quarter as against ₹1,078 crore a year ago. Asset quality saw some improvement but non-performing assets remained high.

Gross NPAs stood at ₹28,740.59 crore or 14.97 per cent of gross advances as on September 30, 2021 versus 16.9 per cent a year ago. Net NPAs stood at 5.55 per cent of net advances at the end of the second quarter as against 4.71 per cent a year ago.

Prashant Kumar, Managing Director and CEO, Yes Bank said the resolution momentum of the bank continues with ₹987 crore of cash recoveries and ₹969 crore of upgrades in the second quarter of the fiscal.

“We are on track to meet the target of ₹5,000 crore through recoveries and upgrades this fiscal,” he told reporters.

Dish TV

On the issue of Dish TV, Kumar said the bank is doing everything to secure the asset and will explore legal recourse to maximise the recovery.

The bank would inform if and when it approaches the courts on the issue.

The bank is also moving toward setting up its asset reconstruction company (ARC) and expects to announce the name of the foreign partner in the next 60 days. “We have got a fantastic response from international investors. We hope to conclude the deal before the end of the financial year,” he said, adding that the lender will transfer all NPAs to the ARC.

“We will make our bank 0 per cent NPA as of March 31, 2022,” he said.

Restructuring

The bank said that ₹421.01 crore of the ₹4,621.74 crore restructured under the Reserve Bank of India’s Resolution Framework 1.0 had slipped into NPA during the half-year. Of this, it has written-off ₹8.06 crore.

Under the Resolution Framework 2.0, it has received requests for resolution of 17,778 personal loans, 2,634 business loans and 1,588 small businesses involving a total exposure of ₹857.64 crore. It has increased provisions by ₹125.86 crore on account of the resolution.

Published on October 22, 2021

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