Yes Bank Q3 results: Net profit jumps 77% to Rs 266 cr on lower provisions

Yes Bank on Saturday posted a 77% year-on-year (YoY) jump in net profit at Rs 266.43 crore in the December quarter (Q3FY22) as against a profit of Rs 151 crore in the corresponding quarter last year, the private sector lender said in an exchange filing. 

The company's profit spiked in Q3, beating estimates, led by a dip in provisions which plunged 82.1% on-year to Rs 375 crore compared to Rs 2,089 crore in the year-ago quarter. 

The bank reported a 31% fall in its net interest income (NII) at Rs 1,764 crore from Rs 2,560 crore in the corresponding quarter last year. Net interest margin (NIM) for the December quarter stood at 2.4% against 2.2% in the September quarter and 3.4% in the year-ago quarter. 

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The bank's cost of funds came in at 5.1% compared to 5.4% in the preceding quarter and 6.1% in the same duration last year. Gross non-performing asset (GNPA) ratio improved to 14.7% consecutively as against 15% in the September quarter. 

On the other hand, net NPAs increased to 5.29 per cent as against 4.04 per cent at the end of the third quarter previous fiscal.

Provisions other than tax and contingencies came down significantly to Rs 374.64 crore from Rs 2,089 crore.

''On November 1, 2021, the bank had completed the sale of its entire stake in its wholly-owned subsidiaries YES Asset Management (India) Limited and YES Trustee Limited to CPL Finance and Investments Limited. The net positive impact to the financial results post this sale, including reversal of the impairment provision was Rs 14.94 crore,'' it said.

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The provision coverage ratio decreased to 79.3 per cent at the end of December 31, 2021.

Fresh slippages stood at Rs 978 crore while there was a cash recovery of Rs 610 crore and upgrades of Rs 573 crore.