Yes Bank posts Q2 net profit of Rs 129 crore
Private sector lender, Yes Bank has returned to profit during the fiscal second quarter to September 30, helped by lower provisioning for bad loans.
The Mumbai-based lender reported a net profit of Rs 129.37 crore for the quarter ended September 30, as compared to a loss of Rs 600.08 crore in the corresponding quarter last year.
Net profit of the lender stood at Rs 45.44 crore in the preceding quarter ended June 30.
Percentage of gross non-performing assets (NPA) stood at 16.30% against 17.30% on QoQ basis. Likewise, net NPA came at 4.71% against 4.96%.
Provisions declined 11.10 per cent YoY to Rs 1,187 crore. However, the figure witnessed a rise of 9.3 per cent on QoQ basis.
Net interest income (NII) declined 9.70% YoY to Rs 1,973 crore, while non-interest income declined 25.30% YoY to Rs 707 crore.
Net interest margin (NIM) stood at 3.1% in Q2FY21 against 2.7% last year. Cost to income ratio declined to 49.30% from 53.40%.
There are initial signs of recovery, but uncertainty around incremental corporate book stress, selling restrictions on private banks and management reshuffle preclude any meaningful assessment of business direction and residual net worth valuation.
Deposit accretion and asset quality are the key elements to monitor, along with stakeholder confidence.
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