Yes Bank recorded a profit of Rs 367 Crore in March quarter of 2021-22
Mumbai:
Yes Bank on Saturday reported a net profit of Rs 367 crore for the March 2022 quarter, helped by a heavy reduction in provisions for bad debts, which the private sector lender had to set aside as it recognised legacy stress in the year-ago period.
Financial year 2021-22 is the first full-year profit since 2018-19, Yes Bank said in a regulatory filing.
The city-headquartered bank ended 2021-22 with a post-tax profit of Rs 1,066 crore. The lender was bailed out by an SBI-led consortium three years back.
The bank’s core net interest income came at Rs 1,819 crore for the March quarter, which is a rise of 84 per cent when compared to the year-ago period. The net interest margin expanded to 2.5 per cent, while it recorded a loan growth of 8 per cent.
The non-interest income rose 27.9 per cent to Rs 882 crore during the quarter.
The situation on sour assets, which was a prime reason for reporting a loss for the last two fiscal years, also showed an improvement during the reporting quarter, with the gross non-performing assets ratio improving to 13.9 per cent from the year-ago period’s 15.7 per cent.
Its chief executive and managing director Prashant Kumar told reporters that it will continue with the work on asset quality in the new fiscal as well and is targeting recoveries and upgrades of over Rs 5,000 crore in 2022-23.
Mr Kumar said work on floating the asset reconstruction company announced earlier to house all the legacy bad assets of over Rs 50,000 crore is at an advanced stage and the bank is speaking to potential partners for operationalising the venture by June end.
It is targeting a loan growth of 15 per cent, which will include a 10 per cent expansion in the large corporate book that de-grew in 2021-22 due to a de-risking strategy adopted by the bank and de-leveraging by companies, he said.
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