Yes Bank Ltd.'s standalone net profit surged 65% year-on-year to Rs 1,080 crore in the September quarter, supported by strong growth in net interest income and operating profit.
The private sector lender had reported a net profit of Rs 654 crore in the year-ago period.
Net interest income (NII), or the difference between interest earned on loans and other assets and interest paid on deposits and borrowings, increased 23% to Rs 2,822 crore from Rs 2,301 crore a year earlier.
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Operating profit rose 29.4% year-on-year to Rs 1,678 crore from Rs 1,297 crore, reflecting an improvement in the bank's operating performance.
Provisions declined 24.3% to Rs 317 crore from Rs 419 crore in the year-ago quarter. They were also lower than the Rs 394 crore reported in the June quarter, marking a sequential decline of 19.5%.
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Asset quality remained stable, with a marginal improvement in the gross non-performing asset (NPA) ratio. Gross NPAs stood at 1.2% at the end of September, compared with 1.3% at the end of June. The net NPA ratio remained unchanged at 0.2% sequentially.
Segmental results showed mixed trends. Treasury operations profit before tax rose to Rs 715 crore from Rs 380 crore a year earlier.
However, corporate banking profit before tax declined to Rs 573 crore from Rs 790 crore over the same period.
Retail banking reported a smaller pre-tax loss of Rs 14.6 crore, compared with a loss of Rs 358.1 crore in the year-ago quarter. Other banking operations profit before tax stood at Rs 189 crore, broadly unchanged from Rs 192 crore a year earlier.
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AT-1 Bonds Judgment
On the additional tier-1 (AT-1) bonds judgment, Yes Bank said it was evaluating the consequential implications of the ruling.
The bank stated that its September-quarter results did not reflect the impact of the judgment. Its quarterly performance would have been materially different had the impact been recognised, it said.
The potential financial implications of the judgment remain an important factor to watch as the bank evaluates its consequences.
Yes Bank Share Price
Yes Bank shares ended Friday, October 16, at Rs 17.50, down Rs 0.62 or 3.42% from the previous close of Rs 18.12.
The stock opened at Rs 17.69, reached an intraday high of Rs 18 and slipped to a low of Rs 17.46 during the session.
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