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Private sector lender YES Bank managed to be back in black in the first quarter of the fiscal after posting a maiden loss in the fourth quarter of 2018-19 but its asset quality continued to remain under pressure.
The bank posted a net profit on standalone basis of ₹113.76 crore for the quarter ended June 30, 2019 — a near 91 per cent drop from ₹1,260.36 crore of net profit posted in the same period a year ago. It had made a net loss of ₹1,506 crore in the March 2019 quarter.
Consolidation phase
“Net profit at ₹114 crore for first quarter despite absorbing one-off impact from MTM provisions of ₹1,109 crore,” the bank said in a release on Wednesday. “This was a ‘Quarter of Consolidation’ in which the bank has demonstrated strong resilience in revenue and asset quality. We believe that earnings trajectory should strengthen significantly from hereon,” its management said.
Total income grew by 9.87 per cent to ₹9,088.80 crore for the first quarter of the fiscal, against ₹8,272.18 crore a year ago.
Net interest income grew 2.8 per cent on annual basis to ₹2,281 crore, which includes the impact of about ₹223 crore of interest reversals on account of fresh slippages during the quarter. The net interest margin stood at 2.8 per cent.
Meanwhile, non-interest income of the bank was down by 24.8 per cent to ₹1,273 crore (₹1,694.14 crore). In an indication that the clean-up of the bank’s balance sheet continues under new Managing Director and CEO Ravneet Gill, the bank’s provisions more than doubled to ₹1,784.11 crore (₹625.65 crore).
However, sequentially, the provisions halved from ₹3,661.70 crore in the fourth quarter of 2018-19.
Gross non-performing assets shot up to ₹12,092.10 crore or 5.01 per cent of gross assets as on June 30, 2019, compared to 1.31 per cent a year ago.
Net NPAs, too, jumped up to ₹6,883.27 crore or 2.91 per cent against 0.59 per cent a year ago.
YES Bank said gross slippages amounted to ₹6,232 crore during the first quarter and recoveries and upgrades totalled ₹1,678 crore.
Commenting on an anonymous whistleblower complaint received in September 2018, YES Bank said based on the Audit Committee direction, it along with an external firm is anlaysing the allegations. “Based on work done and findings till date, the Bank has not identified any material financial statement implications,” it said, adding that it will consider the implications once the examination is completed.
The bank’s scrip fell 5.25 per cent and closed at ₹ 98.45 apiece on the BSE.
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