Yes Bank Q1 net up 355% YoY at Rs 207 cr on surge in non-interest income

Private lender Yes Bank's net profit rose by 355.2 per cent to Rs 207 crore in the first quarter ended June 2021 (Q1FY22) on a rise in non-interest income and a sharp dip in provisions.

The bank posted net profit of Rs 45 crore during the same quarter last year (Q1FY21). Sequentially, the bank had booked a loss of Rs 3,788 crore in the quarter ended March 2021 (Q4FY21).

The Yes Bank stock closed flat at Rs 13.07 per share on BSE.

Its net interest income (NII) fell by 26.5 per cent in Q1FY22 to Rs1,402 crore from Rs 1,908 crore in Q1FY21. In April-June 2021,the moratorium was in force and bank booked interest income, which was reversed in the fourth quarter (Q4Fy21). Sequentially, NII was up by 42.1 per cent from Rs 987 crore in Q4Fy21.

Net interest margin (NIM) for the reporting quarter declined to 2.1per cent for Q1FY22 from three per cent for Q1FY21. However, sequentially NIM rose from 1.6 per cent in Q4Fy21.

Prashant Kumar, its managing director and chief executive said the bank would close the financial year with NIM of about 2.6 per cent.

Its non-interest income was up by 70.2 per cent on YoY basis to Rs 1,056 crore in Q1FY22. Sequentially, it rose by 29.5 per cent from Rs 816 crore in Q4Fy21.

The bank's asset quality profile improved with gross non-performing assets (NPAs) at 15.6 per cent by June 2021 from 17.3 per cent a year-ago. Sequentially, GNPAs rose marginally from 15.41 per ceny in March 2021.

Net NPAs rose to 5.78 per cent during the quarter from 4.96 per cent a year ago. Net NPAs were at 5.88 per cent in March 2021.

Its provisions fell 40.7 per cent to Rs 644 crore in Q1FY22 from Rs 1,087 crore in Q1FY21. The provisions were at Rs 5,240 crore in Q4Fy21.

The provision coverage ratio (PCR) rose marginally to 79.3 per cent for Q1Fy22 from 79.1 percent a year ago. PCR was 78.6 per cent in March 2021.

The impact of Covid-19 has been factored and going forward the upgrades will be more than slippages, said Prashanth Kumar.

Advances shrank by 0.5 per cent to Rs 1.63 trillion in Q1FY22, while deposits also grew by 39.1 per cent to Rs 1.63 trillion in June 2021. Bank has guided for 15 per cent credit growth with retail & MSMEs segment at 20 per cent and corporate growth of 10 per cent in Fy22.

The bank’s total Capital Adequacy Ratio (CRAR) stood at 17.9 per cent in June 2021 with tier I of 11.6 per cent.