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Private sector lender YES Bank reported a standalone net profit of ₹150.71 crore for the third quarter of the fiscal year with robust growth in net interest income.
It had a net loss of ₹18,560 crore in the quarter ended December 31, 2019. The bank’s board, which met on Friday, also approved raising ₹10,000 crore of funds in one or more tranches “through one or more permissible modes, including but not limited through a Qualified Institutions Placement/ Rights Issue / Global Depository Receipts / American Depository Receipts / Foreign Currency Convertible Bonds / Further Public Offering or a combination thereof, subject to shareholders’ enabling approval”, it said in a regulatory filing.
Shareholders’ approval
Prashant Kumar, Managing Director and CEO, YES Bank, said the fund raise proposal is only an enabling provision as shareholders’ approval takes time.
“There is good traction in business and improvement in collection efficiencies. Demand from all sectors, including retail, MSME, corporate,” he told reporters.
For the October to December 2020 quarter, YES Bank’s net interest income more than doubled to ₹2,560 crore from ₹1,065 crore in the same period a year ago. Its non-interest income also grew by 91.4 per cent to ₹1,197 crore in the third quarter this fiscal.
Net interest margin was at 3.4 per cent as on December 31, 2020, versus 3.1 per cent in the second quarter of the fiscal and 1.4 per cent in the third quarter of last fiscal.
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AMFI’s latest reclassification, which MFs must follow for investments, features Adani Enterprises and 3 others in top m-cap clubProvisions amounted to ₹2,199 crore at the end of the third quarter this fiscal, which was 85.2 per cent higher than the second quarter this fiscal, but much lower than ₹24,766 crore in the third quarter last fiscal.
“Total step up in provisioning of about ₹2,935 crore consists of additional ₹765 crore towards Covid-19-related provisioning (aggregate at ₹2,683 crore) and balance majorly towards increasing PCR of both NPA and NPI,” said YES Bank in a statement.
Gross NPAs stood at ₹29,546.54 crore or 15.36 per cent of gross advances as on December 31, 2020, versus 16.9 per cent at the end of the second quarter and 16.8 per cent a year ago. Net NPAs were at 4.04 per cent at the end of the third quarter this fiscal.
The bank’s proforma gross NPAs would, however, be at nearly 20 per cent, said Kumar. The bank has invoked loan restructuring of ₹8,062 crore.
Deposit mobilisation continues at ₹1,46,233 crore, which was 7.7 per cent growth on a sequential basis and 38.8 per cent over the nine month period.
Net advances also grew by 1.7 per cent quarter on quarter at ₹1,69,721 crore, with a strong pick-up in retail and SME disbursements.
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