NEW DELHI: Private sector lender Yes Bank has posted the highest quarterly profit since December 2018 as provisions against bad loans fell. In a regulatory filing, the bank said its net profit came in at Rs 207 crore for the quarter ended June as compared to Rs 45 crore in the same quarter last year, marking a rise of 355.2%.
Net interest income, or core income, of the bank stood at Rs 1,402 crore, down 26.5% over the year earlier. Non-interest income rose 70% year-on-year to Rs 1,056 crore during the first quarter. This included retail banking fees of Rs 342 crore and recovery from written off accounts worth Rs 249 crore. Operating profit in Q1 FY22 stood at Rs 920 crore, after a decline of 19.8% from Rs 1,147 crore in Q1 FY21, the bank added.
Provisions, meanwhile, declined 41% during the June quarter of the ongoing fiscal to Rs 644 crore, from Rs 1,087 crore in the same quarter last fiscal. Despite this, the bank’s provision coverage ratio improved to 79.3%. According to Yes Bank, it had restructured loans worth Rs 4,624 crore as on June.
That included retail loans worth Rs 13.51 crore and corporate loans worth Rs 4,464 crore. Corporate recoveries and resolutions stood at Rs 1,643 core, which far outpace slippages of Rs 1,258 crore and almost entirely offset total slippages. Fresh gross slippages during the quarter were at Rs 2,233 crore.
On the asset quality front, its gross non-performing assets (GNPA) stood at 15.6% as on June 30, 2021 compared with 15.41% as on March 31.
Federal Bank’s net profit falls 8.4% to Rs 367.29 crore in June
Private sector lender Federal Bank on Friday reported an 8.4% fall in its net profit to Rs 367.29 crore for the first quarter ended June 30, 2021, as provisioning for bad loans soared. The bank had posted a net profit of Rs 400.77 crore in the corresponding quarter of the previous financial year.
On a sequential basis also, the net profit was down 23.1% , from Rs 477.81 crore in the quarter ended March 2021. However, its total income during April-June 2021 was higher at Rs 4,005.86 crore as against Rs 3,932.52 crore in the year-ago period, Federal Bank said in a regulatory filing. The bank’s asset quality showed deterioration as the gross non-performing assets rose to 3.50% of the gross advances by the end of June 2021, from 2.96% as of June 2020.