MUMBAI: Mid-sized private sector lender Yes Bank has reported a street-beating set of numbers on all key parameters for the quarter to September with net income zooming by over 150 percent to Rs 553 crore from Rs 225 crore in the same quarter last year.
The bank, rescued by an RBI initiated bailout in March 2020, reported healthy margins, robust core or net interest income and stable asset quality along with healthy asset and deposit growth numbers.
In a concall with reporters Saturday, the bank management said the net interest income rose 14.3 percent to Rs 2,200 crore from Rs 1,925.1 crore a year ago, reflecting steady growth in core lending operations.
Net interest margin has improved to 2.4 percent from 2.3 percent a year ago. However, it remained flat sequentially.
Non-interest income came in at Rs 1,407 crore or at 1.4 percent of average assets annualized.
"The bank continues to deliver according to the stated strategic objectives, with superior growth in SME and mid corporate segments, growth resumption in the corporate segment and calibration of growth in retail segment, aimed at profitability improvement. The bank continues to maintain nil priority sector lending shortfalls," Prashant Kumar, managing director told reporters.
The bank’s asset quality showed improvement, with gross non-performing asset ratio decreasing to 1.6 from 1.7 on year, while the net NPA ratio remained stable at 0.5.
In absolute terms, GNPAs stood at Rs 3,889.43 crore, marginally higher from Rs 3,844.90 crore quarter-on-quarter. But net NPAs declined to Rs 1,168 crore from Rs 1,246 crore in the previous quarter, indicating improved credit quality and lower default risk. This had the bank’s provision coverage ratio improving to 70 compared to 56.4 a year ago and from 67.6 sequentially.
Gross slippages came in at Rs 1,314 crore as against Rs 1,263 crore a year ago and at Rs 1,204 crore in the June quarter.
Overdue book of 31-90 days came in at Rs 3,762 crore from Rs 3,898 crore and Rs 3,623 crore in Q1.
Net advances rose to Rs 2.35 trillion, a growth of 12.4 percent on-year and 2.4 percent on-quarter.
The CEO said the bank saw robust momentum in fresh disbursals at Rs 23,998 crore helping the total balance sheet jump 14.5 percent on-year.
On the other hand, deposits clipped at 18.3 percent to Rs 2.77 trillion on-year and 4.6 percent on-quarter. This is almost double the industry average. Of this, the low-cost Casa ratio printed at 32 compared to 29.4 in Q2 and 30.8 in the previous quarter.