Jobaaj Stories
Yes Bank has reported a 50.17% rise in its profits for the quarter ending in June 2022. Profit for the quarter stood at Rs 310.63 crores against Rs 206.84 crores reported last year. The bank reported a 9.7% YoY rise in total income which came in at Rs 5,394.44 crores.
The bank's Net Interest Income surged 32% YoY to reach Rs 1,850 crores. The private lender's income from investment rose 27% YoY to Rs 784 crores. Its Net Interest Margin improved 30 bps to 2.4%.
Hindustan Zinc Q1 results are live, read more.
The bank witnessed robust growth during the quarter as its advances and deposits grew 14% and 18% respectively. The Gross NPA ratio of the bank declined to 13.40% while the Net NPA ratio contracted to 4.2% as asset quality showed significant improvement. Slippages of the bank fell 52% to Rs 1,082 crores.
Provisions registered a steep decline of 62% YoY and 36% QoQ at Rs 175 crores. Operating profit for the quarter fell 20% to Rs 590 crores while expenses rose 33%. However, the bank reported that the normalized operating profit, adjusted for unrealized and realized gains on investments, grew 32 percent YoY.
"The balance sheet is now resilient to navigate the volatile interest rate environment, and the bank remains on track to achieve the FY23 as well as medium-term guidance and objectives. More importantly, during the quarter, the Bank has successfully come out of the Reconstruction Scheme with the formation of the alternate Board," MD & CEO Prashant Kumar said.
Recently, the bank signed a binding term sheet with JC Flowers to set up an Asset Reconstruction Company (ARC) to whom Yes Bank would be selling legacy bad loans of Rs 48,000 crores to become a 'Zero-NPA Bank'. Considering a 50-75 day resolution, the bank's balance sheet could improve significantly by the end of this year.
The stock of the bank rose 2.8% to close at Rs 14.70 per share on Friday. On Monday the share opened at Rs 14.85 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
