Yes Bank registers second quarter profit of Rs.964.70 crore

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Yes Bank saw its profit drop 3.8% year-on-year (y-o-y) to Rs.964.70 crore during the second quarter which ended on September 30. This was due to one-time hit taken on market-to-market provisioning, which consisted mostly of corporate bonds.

Yes-Bank
Yes Bank registers second quarter profit of Rs.964.70 crore

Due to higher non-performing assets, the bank had to set aside a lower proportion of funds so that it could cover bad loans despite it showing a rapid increase in growth in its loan portfolio.

According to a report by the Economic Times, the Net Interest Income (NII) jumped 28.2% to Rs.2,417.6 crore. NII is the difference between the interest income earned by a bank from its banking activities and the interest paid to the depositors,.

Yes Bank saw its retail bank saw its advances increase by 61.2% with retail advances doubling over last year. The lender also saw its non-interest income for the second quarter rise 18% y-o-y to Rs.1,473.50 crore. The Gross non-performing assets rose from 1.31% it recorded in June to 1.60% in September, which was however, lesser than 1.82% recorded in the second quarter of the last fiscal year.

There has been an uncertainty over who will be leading the bank’s top management which had an effect on the lender’s second-quarter earnings. Rana Kapoor, who is the co-founder and chief executive officer (CEO) of Yes Bank has been asked to step down from his post after January 2019, following a directive passed by the Reserve Bank of India. The bank is currently in the process of finding a new CEO.

Sources: Economic Times, Bloomberg Quint

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