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Private sector lender YES Bank, on Thursday, reported a 3.8 per cent decline in net profit at ₹964.7 crore for the quarter ended September 30, 2018, due to a sharp rise in provisions.
The bank had reported a net profit of ₹1,002.73 crore in the second quarter of last fiscal.
“Net profit declined…which includes impact of ₹252.2 crore of one-time mark-to-market (MTM) provisioning, predominantly on corporate bonds,” said Rajat Monga, Senior Group President, YES Bank, adding that after excluding investment-related MTM provisions and profit on sale of investments adjusted, net profit grew by 36.2 per cent year-on-year.
The bank’s total income grew 43.9 per cent to ₹8,704.68 crore in the second quarter of the fiscal, compared with ₹6,048.78 crore a year ago. Its net interest income grew by 28.2 per cent to ₹2,417.6 crore in the July to September quarter this fiscal.
Net interest margin was stable at 3.3 per cent. Non-interest income grew by 18 per cent at ₹1,473.45 crore in the second quarter of the fiscal, against ₹1,248.44 crore a year ago.
The bank’s asset quality deteriorated. Gross non-performing assets rose on a sequential basis to 1.6 per cent of gross assets as on September 30, 2018, from 1.31 per cent as on June 30, 2018. However, they declined on a year-on-year basis from 1.82 per cent on September 30, 2017.
Net NPAs also rose to 0.84 per cent of net advances at the end of the second quarter this fiscal from 0.59 per cent on June 30, 2018. It stood at 1.04 per cent on September 30, 2017.
The bank reported a 110.25 per cent increase in provisions at ₹939.98 crore in the second quarter of the fiscal, compared to ₹447.06 crore a year ago.
Exposure to IL&FS
YES Bank said it has a gross outstanding exposure of ₹2,620.7 crore to Infrastructure Leasing and Financial Services (IL&FS) Group, which is entirely ‘standard’ as of September 30, 2018.
It stressed that it has nil exposure to the parent/NBFC/financial services entity of the group, and it has exposure to asset-rich subsidiaries and special purpose vehicles with enterprise value commensurate with debt level.
The bank said it is yet to receive the 2017-18 risk-based supervision report from the Reserve Bank of India.
Shares of the lender fell 2.77 per cent and closed at ₹198.35 a piece on the BSE.