MUMBAI: Yes Bank on Thursday reported a profit growth of 25 per cent year-on-year at Rs 1,002.7 crore for the quarter ended September 2017 against Rs 801.54 crore during the corresponding period a year ago.
Growth was driven by higher net interest income and operating profit, even as the private lender saw a surge in provisions, while asset quality deteriorated over the previous quarter.
The private-sector lender’s net interest income - the difference between interest income from lending activities and the interest paid to depositors - shot up 33.5 per cent at Rs 1,885.1 crore during the quarter under review, while net interest margin was flat at 3.7 per cent over the preceding quarter.
Asset quality worsened as gross NPAs shot up to 1.82 per cent from 0.97 per cent and net NPAs rose to 1.04 per cent compared with 0.39 per cent in June quarter. For the second quarter in a row, the bank reported divergences in both gross and net NPAs at Rs 6,355.2 crore and Rs 4,819.4 crore respectively as of March 2017.
Likewise, divergences in provisioning was at Rs 1,536 crore. The bank said 47 per cent of the divergence amount had been upgraded in the first half of the year and another 27 per cent was repaid, while 19 per cent was classified as NPA as on September, 2017.
“The increase in NPA and consequent provision is in conformity with RBI’s Annual Risk Based Supervision exercise conducted for FY2017 (finalised in October 2017). We have fully absorbed the impact of such re-classifications in the results for Q2FY18,” YES Bank said in a statement.
Provisions and contingencies came in at Rs 447.1 crore for the quarter, sharply higher by 56.4 percent quarter-on-quarter and 176.5 per cent year-on-year.
It may be noted that on Tuesday, RBI slapped a monetary penalty on YES Bank for asset classification issues and delay in reporting a security incident across its ATM network last year.