The strong bottomline performance of the lender was aided by a 41 per cent on-year fall in provisions during the reported quarter.
The lender’s net interest income in the quarter slumped 26.5 per cent year-on-year to Rs 1,402 crore, which was below Street’s expectations.
YES Bank’s gross non-performing loans ratio rose to 15.6 per cent in the June quarter from 15.41 per cent in the previous quarter. However, net NPA ratio declined sequentially to 5.78 per cent. YES Bank’s provision coverage ratio also saw a sequential improvement to 79.3 per cent in the quarter.
Gross non-performing loans in the quarter stood at Rs 28,506 crore, which was slightly lower than the previous quarter. Cash recoveries continued to show positive momentum at Rs 602 crore in the quarter.
While the overall advances fell 1 per cent in the June quarter, the lender reported 23 per cent growth in its retail and small businesses loan book that was above its full-year guidance of 20 per cent. The current account-savings account ratio improved to 27.4 per cent and remained on-track to meet the lender’s guidance of more than 30 per cent in 2021-22.
YES Bank’s operating performance in the quarter was disappointing as operating profit sank 20 per cent on-year to Rs 920 crore, which was the highest in several quarters. The net interest margin in the quarter was at 2.1 per cent as against 3 per cent in the year-ago quarter.
Shares of YES Bank ended 0.8 per cent higher at Rs 13.1 on the National Stock Exchange.
