Yes Bank Q1 profit down 91 pc to Rs 114 crore

Yes Bank said on Wednesday its first-quarter net profit dropped 90.97 per cent to Rs 113.76 crore during three months ending June 30 due to lower other income and higher provisioning.

The private sector lender had posted a net profit of Rs 1,260.36 crore in the year-ago period.

Net interest income -- the difference between interest earned on loans and that paid on deposits, increased 2.8 per cent to Rs 2,280.84 crore in Q1 FY20 from Rs 2,219.14 crore in the corresponding period last year.

But other income, which includes core fee income, dropped 24.88 per cent to Rs 1,272.66 crore in the three months from Rs 1,694.14 crore a year ago.

Yes Bank's provisions during the quarter increased 185 per cent to Rs 1,784.11 crore as against Rs 625.65 crore in the year-ago quarter.

The bank's gross non-performing assets (NPAs) as a percentage of total advances 5.01 per cent (Rs 12,092 crore) in the June quarter compared to 1.31 per cent in the year-ago period. Post-provision, the net NPA ratio was at 2.91 per cent (Rs 6,883 crore).

"This was a 'quarter of consolidation' in which the bank has demonstrated strong resilience in revenues and asset quality. We believe that the earnings trajectory should strengthen significantly from hereon," it said in a statement.