Prashant Kumar, MD & CEO, said, “This quarter, we have also seen a growth in the corporate and SME segments, post several quarters of de-growth.”

Yes Bank on Friday reported a 74% year-on-year increase in its net profit to Rs 225 crore for the September quarter, helped by a lower provisioning burden and higher non-interest income.

The bank’s net interest income fell 23% YoY to Rs 1,512 crore while other income rose 30% to Rs 778 crore. The net interest margin, a key measure of profitability, rose 10 basis points (bps) sequentially to 2.2%.

Provisions were down 65% at Rs 377 crore. Yes Bank made provisions worth Rs 336 crore against a single telecom exposure, understood to be Vodafone Idea, with the aggregate coverage working out to 10%. The provision coverage ratio fell to 78.9% from 79.3% at the end of June. The cumulative provisions stood at Rs 25,248 crore in September 2021, down from Rs 26,198 crore at the end of June.

The advances book rose 3.5% YoY to Rs 1.73 lakh crore as on September 30. Retail and micro, small and medium enterprises advances accounted for 54% of the loan book, against 53% a quarter ago. The management held on to its guidance for advances growth of over 15% in FY22, led by a 20% growth in the retail and SME book.

Prashant Kumar, MD & CEO, said, “This quarter, we have also seen a growth in the corporate and SME segments, post several quarters of de-growth.”

Deposits stood at Rs 1.77 lakh crore at the end of September, up 30% YoY. The current account savings account (CASA) ratio stood at 29.4% in Q2FY22, up from 24.8% a year ago.

The bank saw fresh slippages worth Rs 1,783 crore during Q2, with Rs 750 crore coming from the corporate book. The management said retail slippages were as a result of stress related to Covid, and collection efficiency trends are now showing an improvement.

Cash recoveries stood at Rs 987 crore and upgrades were to the tune of Rs 969 crore. The gross NPA ratio fell 63 bps sequentially to 14.97% and the net NPA ratio fell 23 bps to 5.55%. The bank has guided for cash recoveries and upgrades worth over Rs 5,000 crore in FY22.

The capital adequacy ratio as per Basel III stood at 17.6% as on September 30. The common equity tier-I (CET-I) ratio was at 11.5%.

Shares of Yes Bank’ ended lower 4.12% at Rs 13.73 on the BSE.