Yes Bank Q2 net falls 4%; bank has an exposure of Rs 2,620 crore to some SPVs of IL&FS group


Yes Bank Q2 net falls

Private-sector lender Yes Bank on Thursday reported a net profit of Rs 964.7 crore for the quarter ended September, down 3.8% from the corresponding figure in the same quarter last year, as provisions shot up 110% year-on-year (y-o-y) to Rs 940 crore. The net interest income (NII) rose 28% y-o-y to Rs 2,418 crore. NII is the difference between interest earned and interest paid by the bank. The net interest margin (NIM) remained unchanged sequentially at 3.3%.

The asset quality deteriorated from the previous quarter, with the gross non-performing asset (NPA) ratio rising 29 bps to 1.6% and the net NPA ratio inching up 25 bps to 0.84%.

Yes Bank’s advances as on September 30 stood at Rs 2.4 lakh crore, up 61% from the previous year, while total deposits rose 41% y-o-y to Rs 2.23 lakh crore. The current accounts savings accounts (CASA) ratio stood at 33.8%, down from 37.2% at the end of September 2017.

The bank reported gross slippages of Rs 1,630 crore in Q2FY19. This included an account where it has an exposure of Rs 630 crore classified as NPA at the end of September. Rajat Monga, senior group president – financial markets and chief financial officer, said the lender expects prepayments and a consequent upgrade in this account in Q3FY19.

Another account with an exposure of Rs 450 crore was sold to an asset reconstruction company during the September quarter, Monga said. Yes Bank’s provision coverage ratio worsened quarter-on-quarter (q-o-q) by 75 bps to 47.8%.

Monga said the bank has an exposure of Rs 2,620 crore to some special purpose vehicles of Infrastructure Leasing & Financial Services (IL&FS) group, all of which remain standard at present. The bank has no exposure to the parent entity or its financial services arms, which have defaulted on securities and inter-corporate deposits in the last few months. Yes Bank’s shares ended down 2.77% to Rs 198.35 on the BSE. The results were declared after the close of trading hours.

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