Profit, which was on expected lines, fell 7 percent year-on-year to Rs 1,001.8 crore for the quarter ended December 2018. The same grew 3.9 percent sequentially.
Yes Bank shares surged 19 percent intraday on Thursday after the appointment of new MD & CEO of the lender and net interest income in Q3 beats estimates. But the gains trimmed to 8 percent at close on profit booking.
The stock closed at Rs 213.85, up Rs 16.55, or 8.39 percent amid high volumes on the BSE.
The fourth largest private sector lender said it has received RBI approval for its new MD & CEO, Ravneet Singh Gill for him to join on or before March 1, 2019.
Currently Gill is the CEO of Deutsche Bank, India. Rana Kapoor will step down as MD & CEO of the bank on the closing of January 31, 2019.
Profit, which was on expected lines, fell 7 percent year-on-year to Rs 1,001.8 crore for the quarter ended December 2018. The same grew 3.9 percent sequentially.
The profitability was impacted by higher provisions, lower other income and operating income.
Net interest income, the difference between interest earned and interest expended, grew by 41.2 percent YoY to Rs 2,666.4 crore in Q3 with credit growth of 42.2 percent YoY. The bank said deposits growth for the quarter was 30 percent YoY.
Net provisions for the quarter stood at Rs 550.2 crore on account of Rs 570.8 crore of accelerated provisioning on exposure to a stressed infrastructure conglomerate, Yes Bank said. Provisions fell 44 percent YoY, but increased 30 percent QoQ.
Asset quality deteriorated in December quarter, impacted by infrastructure account. Gross non-performing assets (NPA) as a percentage of gross advances were higher at 2.10 percent against 1.60 percent in previous quarter and net NPA higher at 1.18 percent against 0.84 percent in September quarter.
"Excluding the extraordinary impact of aggregate exposure to a stressed infrastructure conglomerate, gross NPA improved sequentially to 1.32 percent from 1.60 percent last quarter, net NPA improved to 0.59 percent from 0.84 percent last quarter and provision coverage ratio improved to 55.6 percent from 47.8 percent," Yes Bank said.
The lender has total exposure of Rs 2,530 crore to a stressed infrastructure conglomerate (IL&FS).
Yes Bank believes that the aggregate provisions made on its (stressed infrastructure conglomerate) operating and subsidiary company exposures are adequate with the expected realisations. It also has additional non-fund based exposure of Rs 88 crore to the stressed infrastructure conglomerate.
Other income or non-interest income during the quarter fell by 37 percent to Rs 891 crore and operating profit was down by 0.6 percent to Rs 1,990.4 crore compared to year-ago.
"Non-interest income declined predominantly on account of treasury loss (corresponding offsets through provision write-backs) and lower corporate fees due to rebalanced sequential growth in corporate advances," the bank said.
