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The Yes Bank Ltd reported a lacklustre quarterly financial result with a net profit of Rs 1,001 crores in the quarter ended December, falling 7 per cent as compared to the previous year same period. The bank’s net profit fell despite an impressive surge in net interest income.
The bank’s net interest income (NII) or the core income expanded by 41 per cent year-on-year to Rs 2,667 crores, which was back by a 42.2 per cent increase in advances. The bank also reported a 41 per cent decline in provisions to Rs 550 crores.
However, the bank mainly failed to capitalise the non-interest income, as the bank reported a 37.4 per cent year-on-year and 39.5 per cent sequential decline in the non-interest income. The bank’s asset quality deteriorated as the gross non-performing assets (NPA) inclined to 2.1 per cent of the total advances as compared to 1.6 per cent in the previous quarter.
Yes Bank’s net NPA ratio also expanded to 1.18 per cent during the quarter under review as compared to 0.84 per cent of the previous quarter. Meanwhile, the net interest margin for the quarter stood stable at 3.3 per cent. The Mumbai-based bank also appointed Deutsche Bank’s Ravneet Gill as its new managing director and chief executive officer.
