YES Bank Q2 profit drops 4% YoY to Rs 965 crore, asset quality deteriorates

Private lender YES Bank on Thursday said its profit dropped 3.8% year-on-year to Rs 964.70 crore for September quarter due to one-time hit on mark-to-market provisioning (MTM), predominantly on corporate bonds.

Analysts in an ET NOW poll had estimated the profit figure at Rs 1,245 crore.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 28.2 per cent YoY to Rs 2,417.6 crore, the company said in regulatory filing.


Non-interest income for the quarter rose 18 per cent YoY to Rs 1,473.50 crore.

The bank said its gross outstanding exposure to IL&FS Group has been Rs 2,620.70 crore, which entirely was “Standard” as of September 30. The exposure is mainly in the asset rich subsidiaries/ SPVs of the group, the bank said, the lender said, adding that it has nil exposure to the parent, the NBFC or financial services business of the Group.

"Advances growth has been well segmented across Corporate, IBU, MSME and Retail Business. Moreover strong deposit growth with rising proportion of granular deposits (CASA + Retail FDs) is testament to the leverage created across people branches and technology over the past few years," said Rana Kapoor, Managing and CEO at YES BANK.
The company made a toal of Rs 940 crore provisions during the quarter. IL&FS Group exposure

Gross non-performing asset rose sequentially to 1.60 per cent in September quarter from 1. 31 per cent in June quarter but was lower than 1.82 per cent in the year-ago quarter.

Total gross slippage at Rs 1,631.6 crore included an account with exposure of Rs 631.20 crore classified as NPA based on post period end review process. The bank said it expects prepayments and consequent upgrade in the account in December quarter.

An account with exposure of Rs 445.8 crore was sold to an ARC during the quarter, the bank noted.