NEW DELHI: Yes Bank on Saturday posted a 47% jump in its net profit at Rs 228.64 crore in the second quarter of FY24 on a lower base, and also indicated that it is witnessing higher delinquencies in unsecured loans.
The Mumbai-headquartered lender had reported a post-tax profit of Rs 160.41 crore in the year-ago period, but the same was Rs 347 crore in the quarter-ago period.
The bank’s core net interest income was at Rs 1,925 crore for the reporting quarter despite an 11.2% loan growth, and the management attributed the fall to a 0.30 percentage point compression in the net interest margins (NIM) to 2.3%.
The bank got a 0.20 percentage point impact on NIMs from the repricing of past deposits on elevated interest rates and another 0.35-0.40 percentage point drag came from shortfalls in priority sector lending targets, wherein the money is deposited in low-yielding Rural Infrastructure Development Fund.The bank’s managing director and CEO Prashant Kumar said the bank is at the “near end” of the slip on the NIMs front and is aiming at expanding the number hereon.