regular-article-logo Saturday, 03 June 2023

Yes Bank back in the black

Asset quality shows an improvement as the percentage of gross non-performing assets falls to 13.93 from 14.65 per cent

Our Special Correspondent Mumbai Published 01.05.22, 03:14 AM
Representational Image

Representational Image File Photo

Yes Bank on Saturday reported a profit of Rs 1,066 crore for the year ended March 31, 2022, making it the first full year profit for the lender since 2018-19.

For the quarter ended March 31, 2022, the private sector bank posted a standalone net profit of Rs 367.46 crore against a loss of Rs 3787.75 crore in the year-ago period and a net profit of Rs 266.43 crore in the preceding quarter.


The rise in its quarterly standalone profit came due to lower provisions which fell to Rs 271.04 crore from Rs 5112.88 crore in the year-ago period. Yes Bank had posted a loss of Rs 3462 crore in 2020-21 and a loss of Rs 16,418.02 crore in 2019-20. For the year ended March 31, 2019, the lender had reported a net profit of Rs 1720.27 crore.

During the quarter, the lender’s core net interest income (NII-interest earned minus interest paid) rose by 84.4 per cent over the corresponding period of the previous year when it came in at Rs 1819 crore as compared to Rs 987 crore. On a sequential basis, the NII gained by 3.1 per cent.

Asset quality of the bank showed an improvement when the percentage of gross non-performing assets (NPAs) fell to 13.93 per cent from 14.65 per cent in the preceding three months while the percentage of net NPAs softened to 4.53 per cent from 5.29 per cent. The quantum of absolute NPAs stood at Rs 27,975.98 crore as against Rs 28,654.49 crore in the October-December 2021 period.

“This transformation journey taking place at Yes Bank has resulted into sustained improvement in balance sheet growth, accelerated granularization, improving asset quality trends, enhanced liquidity and stronger capital position over the past two years,” said Prashant Kumar, MD & CEO, Yes Bank.

“While the core operating profitability of the franchise continues to improve, the drag from legacy stressed assets has significantly reduced, resulting into net profitability,’’ he added.

IDFC First Bank net

IDFC First Bank on Saturday posted an over two-fold rise in net profit to Rs 343 crore in the March 2022 quarter on the back of strong core operating income and lower provisioning for bad loans.

The private sector lender had reported a net profit of Rs 128 crore in the same quarter of the previous fiscal.

Total income during the January-March rose to Rs 5,384.88 crore from Rs 4,811.18 crore in the same period of FY21, IDFC First Bank said in a regulatory filing.

The bank has built up significant momentum in new business generation, while continuing to invest in its platform and people to build a differentiated franchise that delivers sustainable and profitable growth in a responsible manner

Yes Bank added that while its resolution momentum continued during the year with total recoveries and upgrades standing at Rs 7,290 crore against Rs 5,782 crore in the previous fiscal, the net advances at the end of March 31, 2022 showed a rise of 8 per cent over the previous year period at Rs 181.052 crore.

On the liabilities front, total deposits at Rs 197,192 crore, showed a growth of 21 per cent over the previous year. The ratio of its low cost current account and savings account (CASA) deposits stood at 31.1 per cent as compared to 26.1 per cent in 2020-21.

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