MUMBAI: Mid-sized private sector lender Yes Bank, rescued by an RBI-led package in March 2020, has reported a robust 47 per cent rise in its net profit to Rs 502 crore in the June quarter on improved asset quality which has seen its bad loan pile halving.
The net NPAs halved to 0.5 per cent in the reporting quarter from 1 per cent a year ago. At the same time, gross NPAs declined marginally to 1.7 per cent from 2 per cent which led to the bank making lesser provisions for loans, which plunged by 41.2 per cent, Prashant Kumar, the managing director of the city-based lender told reporters.
He also expressed hope that slippages will come down further from the forthcoming quarters.
“In FY25, we will get 25 per cent of balances in the RIDF back, worth about Rs 11,000 crore, and the rest may happen over the next two to three years,” Kumar said.
After clipping at 14.7 per cent in the reporting quarter, Kumar has set a higher credit target of 16-17 per cent in the current financial year, and deposit growth will be 20-21 per cent which came in at 20.8 per cent in the reporting period.
Kumar also scotched media reports on stake sale as baseless and so is about the RBI approval.
The key profitability gauge net interest margin was unchanged at 2.4 per cent and therefore the bottom-line boost was primarily from the non-interest income of Rs 1,199 crore, which was 20.5 per cent more than the year-ago period.