• Shares of Yes Bank fell over 9% to ₹17 per share on BSE in early deals on Monday
Shares of Yes Bank fell over 9% to ₹17 in early deals on the BSE on Monday after the lender reported an 80% drop in quarterly net profit for the three months ended December 2022 due to an increase in bad loans. The provisions for The bank's total provisions increased to ₹845 crore as against ₹375 crore during the quarter under review.
Net profit fell to ₹51.5 crore as compared to ₹266 crore in the year-ago quarter. According to Refinitiv IBES data, analysts had expected the lender's profit to rise to ₹336 crore. Meanwhile, net interest income (NII), the difference between interest earned and spent, rose nearly 12% to ₹1,971 crore. Net interest margin, a key indicator of the bank's profitability, increased 10 basis points to 2.5% in the third quarter.
The bank's asset quality improved as gross non-performing assets (NPAs) declined to 2.02% of total loans from 12.89% in the previous quarter, while net NPAs grew by 3.60% quarter-on-quarter (QoQ). in comparison was 1.03%. , Credit growth improved to 10% while deposits grew by 16%.
The private sector lender also announced that it will appeal against the Bombay High Court order in the ₹8,400 crore AT-1 bond case in 2020, saying it has strong legal grounds to do so.
Yes Bank MD & CEO Prashant Kumar said, “During the quarter, the bank successfully completed two deals which are strategic and transformational in this new journey of the bank. The successful capital raise has facilitated a significant expansion of our capital base, and upon full liquidation, our CETI ratio will reach a very comfortable level. Further, with the successful transfer of stressed assets to JC Flowers ARC, the GNPA and NNPA ratios are now at their lowest since Q3FY19."
Last month, the private sector lender said it has transferred stressed assets worth ₹48,000 crore to JC Flowers Asset Reconstruction Pvt Ltd, a move that will clear the bank's books of bad assets.
No comments:
Post a Comment