Mumbai: Yes Bank on Saturday reported 80 percent jumped in consolidated net profit at Rs 265.76 Crore for the December quarter of 2021-22, assisted by a decrease in the provisions for bad loans.
The net interest of the bank’s net interest declined 31 percent to Rs 1,764 Crore, despite the expansion of 0.25 percent in a net interest margin to 2.4 percent but limited by loan growth pressed at 4 percent.
Independently, profits jumped 77 percent to Rs 266.43 Crore in the quarter reviewed.
Given the de-bulking exercises where it has reduced high-value loans and also de-leveraging exercises by corporates, the Bank has reduced FY22 loan growth guidelines to 10 percent of the previous 15 percent, said CEO Prashant Kumar.
This provision decreased by 82 percent to RS 375 Crore from Crore Rs 2,089 last year, helping the bottom line.
The share of non-performing non-performing assets (NPA) in the loan portfolio as a whole fell to 14.65 percent from 15.36 percent in the period of years and a quarter of year ago 14.97 percent, because fresh slippages were contained at Rs 978 Crore.
Bank management said Rs 435 Crore came from corporate loans, RS 388 Crore from Retail and Rs 123 Crore from small businesses.
Quantum restructured loans increased to RS 6,878 Crore from RS 6,184 Crore lectures, which Kumar was associated with several projects facing the delay in the start of commercial operations and also Covid-2 restructuring.
Kumar said the bank’s plan to float the company’s reconstruction of assets (ARC) to accommodate the entire quantum of the 50,000 crore Hospital in suppressed progress seems to be postponed by a quarter of Covid cases.
He said the bank had chosen four investors to take stocks in the proposed Arc, and expect the RBI license and asset transfer to occur in June this year.
The bank has decided to take 20 percent of the stake in the proposed arc, said Kumar, chose not to comment on vehicle reports that were valued at Rs 12,000 Crore.
The idea is to take NPA to zero and start working again with clean slate, he said.
The bank’s capital adequacy as a whole reached 17.6 percent in December 2021, and could consider the next fiscal increase exercise depending on his needs, Kumar said.
The bank inched towards the target of having 60 percent of its loan from retail and small business, and relied on the company’s troubled segment with only 40 percent of its loan, he said, pointing that the ratio was established at 57: 43.
The total share of unsecured loans was below 10 percent and 15 percent From retail books, he said, indicating that it was comfortable with him now.