Yes Bank Q2 profit falls 4%

Yes Bank Ltd on Thursday reported a 3.8% decline in its September quarter as bad loans continued to mount and provisions soared.

The bank reported Rs2620.69 crore exposure to troubled Infrastructure Leasing & Financial Services Ltd as of September 2018.

Net profit for the quarter stood at Rs964.70 crore against Rs1002.73 crore a year ago. According to 18 Bloomberg analyst estiamtes, the bank was expected to post a profit of Rs1,273.80 crore.

Provisions and contingencies soared 110.26% to Rs939.98 crore in the quarter from Rs447.06 crore a year ago. On a quarter-on-quarter basis, they surged 50.2% from Rs625.65 crore. Other operating expenses jumped 40.1% to Rs930.59 crore.

Net interest income (NII), or the core income a bank earns by giving loans, was up 28.25% to Rs2,417.55 crore versus Rs1,885.09 crore last year. Other income was at Rs1,473.45 crore, up 18% from Rs1,248.44 crore a year ago.

Gross non-performing assets (NPAs) was up 42% to Rs3,866.08 crore at the end of the September quarter from Rs2,720.34 crore in the same quarter last year.

As a percentage of total loans, gross NPAs fell to 1.6% as compared with 1.82% in the year-ago quarter. Net NPAs were at 0.84% against 1.04% a year ago.

Advances for the quarter grew 61.2% to Rs2.40 trillion while deposits rose 41.05% to Rs2.23 trillion.

Recently Yes Bank reported to exchanges that Reserve Bank of India denied a three-year extension to its chief executive officer Rana Kapoor and asked him to step down after 31 January 2019.