YES Bank Q1 Results: Profit jumps 50% to Rs 311 crore; NIM at 2.4%

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YES Bank on Saturday reported a 50.17 percent yoy (YoY) increase in profit after tax (PAT) to Rs.310.63 crore compared to Rs.206.84 crore in the same quarter last year.

Net interest income (NII) for the quarter rose 32 percent yoy to Rs 1,850 crore, the private lender said in a BSE filing.

Net interest margin (NIM) for the quarter was 2.4 percent, up almost 30 basis points year-on-year.

The bank said its non-interest income for the quarter was Rs 781 crore. Excluding unrealized and realized investment gains, noninterest income increased 35 percent year-over-year.

The bank reserved Rs 175 crore for the quarter, down 62 per cent yoy and 36 per cent sequential, helped by smaller slips.

Slippages for the quarter were Rs 1,072 crore compared to Rs 2,233 crore for the same quarter last year.

Asset quality improved as the percentage of gross non-performing assets fell to 13.4 percent for the quarter, versus 13.9 percent in March and 15.6 percent in the year-ago quarter.

The private lender said it exited the recovery program with the formation of an alternative board effective July 15, per shareholder approval. The new board has recommended the appointment of Prashant Kumar as MD & CEO for three years, subject to RBI and shareholder approval, the bank said.

said it had signed a binding term sheet with partner JC Flowers to form an ARC with the aim of selling an identified pool of nearly Rs 48,000 in stressed assets.

MD & CEO Prashant Kumar said it was a stable quarter that saw renewed momentum in payouts, improved asset granularization, resilient profitability and improved asset quality metrics.

“The balance sheet is now resilient to navigate the volatile interest rate environment and the bank remains on track to deliver FY23 and mid-term guidance and targets. More importantly, during the quarter, the bank successfully emerged from the rebuilding scheme with formation of the deputy board,” he said.

Kumar said the term sheet for the sale of an identified pool of stressed assets to the ARC has been signed and the successful sale of stressed assets will be the largest such deal in India and a significant milestone in the bank’s new journey.

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