Money & Banking

Yes Bank reports Q4 net profit of Rs 367.46 crore

BL Mumbai Bureau | | Updated on: Apr 30, 2022

FY22 marks first full year of profit since FY19

Shrugging off troubles of the past, private sector lender Yes Bank reported a standalone net profit of Rs 367.46 crore in the fourth quarter of 2021-22 as against a net loss of Rs 3,787.75 crore in the corresponding quarter of 2020-21.

For the full fiscal 2021-22, the bank’s net profit was Rs 1,066.21 crore compared to a net loss of Rs 3,462.23 crore in 2020-21.

“Yes Bank is the sixth largest private sector bank in terms of total assets. We have returned to full year profitability in 2021-22. This is the first full year profit since 2018-19,” said Prashant Kumar, Managing Director and CEO, Yes Bank.

The bank’s net interest income surged 84.4 per cent to Rs 1,819 crore in the quarter ended March 31, 2022 from Rs 987 crore a year ago.

Net interest margin improved to 2.5 per cent as on March 31, 2022 from 1.6 per cent as on March 31, 2021.

Non interest income also increased by 27.9 per cent to Rs 882 crore in the fourth quarter of last fiscal as against Rs 689 crore in the fourth quarter of 2020-21.

Provisions declined by 94.7 per cent to Rs 271 crore in the January to March 2021 quarter from Rs 5,113 crore a year ago.

Kumar further said that the bank’s resolution momentum continues. Total recoveries and upgrades for 2021-22 was Rs 7,290 crore as against Rs 5,782 crore in 2020-21. Cash recoveries and upgrades  was at Rs 1,828 crore in the fourth quarter of last fiscal.

The bank is targeting recoveries of over Rs 5,000 crore in 2022-23.

Asset quality showed some improvement but remained elevated.

Gross non performing ratio was at 13.93 per cent as on March 31, 2022 versus 15.4 per cent in March 31, 2021 and 14.7 per cent as on December 31, 2021.

Net NPA ratio was at 4.5 per cent as on March 31, 2022 versus 5.9 per cent as on March 31, 2021.

Kumar said the process of forming the asset reconstruction company is on track. The bank is likely to complete it in the current quarter and is finalising the partner for the venture. The ARC would be implemented in the June quarter and the bank would offload its entire GNPA pool to it.

The bank’s advances grew 8.5 per cent year on year to Rs 1,81,052 crore as on March 31, 2022 while total deposits increased by 21 per cent year on year to Rs 1,97,192 crore in the same period.

The private sector lender is targeting a 15 per cent growth in advances in the current fiscal with 10 per cent growth in the wholesale business and over 25 per cent increase in the retail and SME book.

The bank’s board had earlier also passed a resolution for raising Rs 10,000 crore of equity capital. Kumar said that considering the uncertainty and global scenario this would be the right time to add to the capital buffer. The current capital base is enough to take care of growth aspirations for the fiscal.

The bank’s CET-1 ratio was 11.6 per cent and CRAR was 17.4 per cent as on March 31, 2022.

Published on April 30, 2022
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