Comments
Yes Bank reported a 47 per cent increase in first quarter net profit at ₹502 crore against ₹343 crore in the year ago quarter. The bottomline was supported by healthy growth in net interest income (NII) and sharp decline in non-tax provisions.
The private sector lender’s NII (difference between interest income and interest expenses) was up about 12 per cent at ₹2,244 crore (₹2,000 crore in the year ago period).
Non-interest income, comprising fees and commission, earnings from foreign exchange transactions, profit/loss from sale of securities, fair valuation of investments, interest on income tax refund and miscellaneous income, nudged up 5 per cent to ₹1,199 crore (₹1,141 crore).
Non-tax provisions declined 41 per cent to ₹212 crore (₹360 crore). The Bank received a write-back of ₹318 crore on provision for investments even as provision for NPAs jumped 63 per cent to ₹513 crore.
Net interest margin declined a shade to 2.4 per cent against 2.5 per cent in the year ago period.
GNPAs position improved to 1.7 per cent of gross advances as at June-end 2024 against 2 per cent as at June-end 2023. Net NPAs position improved a tad to 0.5 per cent of net advances against 0.6 per cent of net advances.
Gross slippages in the reporting quarter was at ₹1,205 crore v/s ₹1,482 crore in the year ago quarter.
Slippages net of recoveries and upgrades in Q1FY25 was at ₹499 crore v/s ₹808 crore in Q1FY24.
Total advances increased by 14.7 per cent yoy to ₹2,29,565 crore as at June-end 2024. Fresh disbursements during the quarter stood at ₹20,910 crore, with retail assets accounting for 36 per cent of the total; SME (34 per cent); corporate (18 per cent); mid-corporate (7 per cent); and rural assets (5 per cent).
Retail & SME: Mid Corprate.: Corporate loans mix stood at 60:15:25 vs. 61:14:25 in the year ago period.
Total deposits rose by 20.8 per cent yoy to stand at ₹2,65,072 crore as at June-end 2024. Low-cost CASA (current account, savings account) deposits improved to 30.8 per cent of total deposits vs. 29.4 per cent in the year ago quarter.
Prashant Kumar, Managing Director & CEO, said, “...While the Income Engines are continuing to fire with normalised net income growth at 15 per cent Y-o-Y, the Bank has been able to contain the operating cost growth at 8 per cent Y-o-Y (ex-Priority Sector Lending Certificates).
“At the same time, the resolution momentum continues to be strong, leading to lower net credit costs, which is also aiding in Return on Asset expansion.”
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.