Yes Bank Quarterly Profit Falls 32% On Provision Set-asides
India's Yes Bank said on Saturday its profit fell in the July-September quarter as it set aside more provisions for bad loans recorded in previous quarters.
The private lender's net profit declined 32 per cent from a year ago to Rs 1.53 billion ($18.5 million). Analysts had expected a profit of Rs 3.69 billion, according to Refinitiv IBES data.
The bank's asset quality improved as gross non-performing assets declined to 12.9 per cent of total loans from 13.4 per cent in the June quarter. Net non-performing assets declined to 3.6 per cent from 4.2 per cent.
Net interest income, the difference between the interest income from lending and that out to depositors was at 19.91 billion rupees, up 31.7 per cent
Provisions rose to 5.83 billion rupees from Rs 1.75 billion the previous quarter.
In September, Yes Bank approved the transfer of stressed assets worth Rs 480 billion to private equity firm J.C. Flowers as it attempts to clean up its balance sheet.
Prashant Kumar, CEO of Yes Bank, earlier told Reuters believed gross bad loans can come down to 2 per cent from 13.4 per cent in the June quarter after transferring the bad loans to the new asset reconstruction company.
The bank is cleaning up its balance sheet after its financial position had seriously deteriorated, sparking contagion risk in the banking system that prompted the central bank to put it under a reconstruction scheme in March 2020.
(Reuters)
