Private sector Yes Bank on Wednesday reported a fall of over 92.4 per cent in its consolidated net profit to ₹95.56 crore in the first quarter ended June this fiscal. The stock closed at Rs 98.45, down 5.25 percent, on the BSE, ahead of June quarter earnings. It has corrected 72 percent in last one year.
The bank had reported a net profit of ₹1,265.67 crore in the April-June quarter of the previous fiscal ended March 2018. Net interest income during the quarter grew 2.8 percent YoY to Rs 2,281 crore with muted loan growth of 10.1 percent. However, on sequential basis, NII and loan book degrew 9 percent and 2.2 percent in Q1.
The interest reversals of Rs 223 crore on account of fresh slippages during the quarter impacted net interest income. Consequently net interest margin contracted to 2.8 percent in quarter ended June 2019, down 50bps YoY and 30bps QoQ, the bank said, adding deposits at Rs 2.25 lakh crore for the quarter registered a 5.9 percent growth YoY and 0.8 percent degrowth QoQ.
Sequentially, the private sector lender had posted first ever loss of ₹1,508.44 crore in the quarter ended March, 2019 due to mounting bad loans. Provisions for bad loans shot up significantly by 185.2 percent year-on-year to Rs 1,784.1 crore, but fell 51.3 percent quarter-on-quarter.
Asset quality deteriorated sequentially. Gross non-performing assets as a percentage of gross advances increased 179 bps sequentially to 5.01 percent (Rs 12,092 crore) and net NPA jumped to 105bps QoQ to 2.91 percent (Rs 6,883.27 crore).