Yes Bank Q3 Results: Profit Jumps Twofold On Fall In Provisions, Asset Quality Stable
Yes Bank saw provisions and contingencies for the quarter fall over 50% on-year to Rs 259 crore.
A fall in provisions helped Yes Bank Ltd. report a twofold rise in net profit in annual terms at Rs 612 crore. Sequentially, the bottom line rose 11%.
Provisions and contingencies for the quarter fell over 50% on-year to Rs 259 crore.
Net interest income rose 10% on the year to 2,223 crore. Consequently, net interest margins of the bank were flat at 2.4% annually and sequentially.
The bank has a medium-term plan for margins, including one of the important components, which is the balances in the Rural Infrastructure Development Fund, which are now beginning to be redeemed and will play out in the coming quarters, the management said in the post-earnings call.
The bank had Rs 44,000 crore of RDIF balances in deposits, which are low-yielding as of September end, and it had fallen below Rs 40,000 crore at the end of December.
"We are still in the process of recalibrating our retail book, and as the pickup happens on the side...continuous work on the cost of funding will add 80-100 bps in margins in the next few years," the management said.
Managing Director and Chief Executive Officer Prashant Kumar said that the lender expects its balances in RIDF to be 5% from the current 8% over the span of three years.
Asset quality remained stable during the quarter ended December. The gross non-performing assets ratio of the bank was flat at 1.6% at the end of December, unchanged from a quarter ago but lower than 2% a year ago.
Net NPA was also flat at 0.5% sequentially, but lower than 0.9% a year ago.
Retail slippages of the bank were Rs 1,348 crore, slightly higher than Rs 1,314 crore a quarter ago and Rs 1,233 crore a year ago. Of this, unsecured loans formed 44%.
The bank's net advances grew 12.6% on year to Rs 2.44 lakh crore. Retail advances of the bank were Rs 99,805 crore at the end of December quarter, lower than Rs 1 lakh crore a quarter ago but Rs 1.03 lakh crore a year ago. Retail advances made up 41% of the bank's total advances in October-December period as against 43% a quarter ago and 47% a year ago.
The retail, small and medium enterprises and mid-corporate book mix was 58:16:26 at the end of December, against 59:16:25 a quarter ago and 63:14:23 a year ago.
Total deposits of the bank were nearly 15% higher on year to Rs 2.77 lakh crore. The current account and savings account ratio was 33% in the December quarter against 32% a quarter ago and nearly 30% a year ago.
Credit deposit ratio of the bank was 88.3%, lower than 84.8% a quarter ago and 89.9% a year ago.
