The lender’s net interest income in the quarter, however, fell 23.4 per cent on-year to Rs 1,512 crore, which was below analysts’ expectations.
The healthy bottomline performance of the lender was thanks to a sharp decline in provisions. YES Bank’s provisions for bad loans declined 65 per cent year-on-year to Rs 377 crore.
The lender also reported a marked improvement in its asset quality in the quarter as gross non-performing loans ratio fell to 15 per cent from 15.6 per cent in the previous quarter. Similarly, net NPA ratio came in at 5.5 per cent as against 5.8 per cent in the previous quarter.
YES Bank said gross restructured loans at the end of the quarter were at Rs 6,184 crore. Overdue book, loans on which payments are due for more than 30 days but less than 90 days, declined Rs 6,000 crore sequentially.
Impressively, YES Bank’s current account-savings account ratio increased to 29.4 per cent in the reported quarter from 27.4 per cent in the previous quarter. At the same time, the portion of retail loans in total loan disbursements in the quarter improved 100 basis points sequentially to 55 per cent.
YES Bank’s advances posted a 3.5 per cent year-on-year growth but rose 5.6 per cent on a sequential basis. Deposits showed a remarkable 30 per cent on-year growth indicating that the lender is winning back the trust of customers.
However, the operating performance of the lender was underwhelming as operating profit declined 45.8 per cent on-year to Rs 678 crore. The net interest margin in the quarter fell 2.2 per cent from 3.1 per cent in the year-ago quarter.
Shares of YES Bank were down 4.9 per cent at Rs 13.60 on the National Stock Exchange.
