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Private sector lender Yes Bank has reported a full-year profit of Rs 1,066 crores for FY 21-22, making it the first full year of profit for the stressed lender since 2018-19.
The company had last reported profits in FY 18-19 where it posted a net profit of Rs 1,720.27 crores. In the next two years, the company suffered major losses as it posted Rs 16,418.02 crores and Rs 3,462 crores in 2019-20 & 2020-21 respectively.
For the quarter ended in March 2022, the profit stood at Rs 367.46 crores against a loss of Rs 3,787.45 crores for the corresponding quarter last year. Its profits grew 37.92% on a quarterly basis.
The company's profits in the third quarter were on account of a sharp decline in provisions, from Rs 5,112.88 crores last year to Rs 271.04 this year.
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The bank's Net Interest Income grew 84.4% from Rs 987 crores to Rs 1,819 crores. The asset quality of the bank showed significant improvement as its Gross NPAs fell from 14.65% to 13.93%. The Net NPA for the quarter improved from 5.29% to 4.53%.
“This transformation journey taking place at Yes Bank has resulted in a 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.
Recently, Yes Bank was involved with the Enforcement Directorate as Rana Kapoor, co-founder of Yes Bank was taken into judicial custody under allegations of a fraud case worth over Rs 5,000 crores. A few days ago, the CBI conducted raids on the premises of top realtors in Maharashtra in connection with the same case. The CBI said that they recovered several incriminating documents from the premises of these realtors.
Irrespective of these circumstances, the bank continues to work to improve its business. It recently tied up with FidyPay, a fintech API firm to improve its banking services. Moreover, the bank is also planning to set up its own Asset Reconstruction Company (ARC) by June.
The stock of the company hasn't seen much trading as it closed at Rs 13.65 per share on Friday.
Article by Aman Agarwal.
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