India's fourth largest private lender Yes Bank announced its quarterly numbers on Thursday.
Though the bank reported in-line set of numbers with regards to topline growth, significant deterioration in asset quality on account of elevated slippages led to profits being lower than estimates.
The balance sheet growth remained strong for the bank with the deposits and advances being at Rs 4.6 lakh crore, up 50.8 percent year-on-year(YoY) and 8 percent quarter-on-quarter(QoQ). This was largely led by robust growth in advances at 61.2 percent YoY and 11.6 percent QoQ.
The loan growth is the highest ever. Deposits of the bank grew by 41 percent YoY and 4.4 percent QoQ. The strong loan growth meant that the declining trend in net interest margin got arrested. Hence, net interest margin came in at 3.3 percent, flat QoQ.
However, on the flip side, slippages were at Rs 1,632 crore vs Rs 560 crore QoQ due to a lumpy account worth Rs 631 crore slipping into NPA’s in Q2FY19.
However, the management said that the company has received part payment on the account in October and expects the balance payment to come in Q3FY19.
The spike in slippages led to gross NPA increasing by 36.9 percent QoQ to Rs 3,866 crore vs Rs 2,825 crore.
Provisions stood at Rs 940 crore vs Rs 447 crore YoY and Rs 626 crore QoQ. This led to net profit of the bank coming in at Rs 964 crore vs CNBC-TV18's poll of Rs 1,253 crore.
The bank has an exposure of Rs 2,621 crore to IL&FS group. This account is currently standard in its book. There has been no report received by them in terms of divergence from RBI. The bank sold NPA’s worth Rs 445 crore to asset reconstruction company.
First Published: IST