Private lender YES Bank s net profit was up 74.3 per cent to Rs 225 crore in the second quarter ended September 2021 Q 2 FY 22 on an uptick in non-interest income and a dip in provisions due to lower slippages.
It had posted a net profit of Rs 129 crore for Q 2 Fy 21. Sequentially, it was up nine per cent from Rs 207 crore in June 2021 Q 1 FY 22 Its net interest income NII shrank by 23.4 per cent in the reporting quarter to Rs 1,512 crore for Q 2 FY 22. However, NII rose sequentially by 7.9 per cent from Rs 1,402 crore in Q1 FY 22.
The net interest margin NIM dipped from 3.1 per cent YoY in Q 2 FY 22 from 2.2 per cent a year ago. However, Prashant Kumar moved sequentially from 2.1 per cent in June 2021 due to benefit from low-cost deposits, its managing director and chief executive NIM said.
The non-interest income of the lender increased by 30.2 per cent to Rs 778 crore in September 2021 from Rs 597 crore a year ago. Sequentially, it shrank by 10.5 per cent from Rs 869 crore in June 2021 quarter.
Its stock closed lower on BSE by 4.12 per cent to Rs 13.73 per share.
Its provisions decreased by 65 per cent to Rs 377 crore in Q 2 FY 22 from Rs 1,078 crore in Q 2 FY 21. Sequentially also, the provision fell by 17.4 per cent from Rs 457 crore in Q 1 FY 22. The provisions declined as slippages in the quarter were low. With improvement in collection efficiency, the slippages will be less in coming quarters. Also the recoveries are expected to cross the target of Rs 5,000 crore for FY 22, Kumar said.
The provision coverage ratio including technical write-offs increased to 78.9 per cent in September 2021 from 79.7 per cent in September 2020. PCR was 79.3 per cent in June 2021.
Its asset quality profile showed improvement with Gross Non-Performing Assets NPAs ratio declining to 15 per cent in September 2021 from 16.9 per cent a year ago. Sequentially it was also down from 15.6 per cent in June 2021.
However, Net NPA ratio moved up to 5.5 per cent in September 2021 from 4.7 per cent a year ago. However, net NPAs fell from 5.8 per cent in June 2021.
About proposed Asset Reconstruction Company ARC Kumar said Bank will finalise and announce prospective joint venture partner in 60 days. It intends to transfer bad loans to this ARC by the end of March 2022.
Its Advances grew at 3.5 per cent to Rs 172,839 crore in September 2021 against Rs 1,66, 923 crore in September 2020. Bank has given guidance for 15 per cent growth in credit for FY 22.
The deposits were up 30.1 per cent to Rs 176,672 crore in September 2021 from Rs 1,35, 815 crore in September 2020. The share The low-cost Savings account and CASA in total deposits improved to 29.4 per cent in September from 24.8 per cent a year ago.
Its capital ratio stood at 17.4 per cent at the end of September 2021. Bank expects to recoveries to enhance capital base in FY 22 and have a look at capital raising plans by end of FY 22 or early next year FY 23.