Mumbai-headquartered Yes Bank on Saturday reported a net profit of Rs 367 crore in the March quarter of FY22. The private-sector lender had incurred a loss of Rs 3,788 crore in the corresponding quarter a year ago. Its performance was led by strong growth in net interest income (NII) and a decline in provisions.

NII rose 84% year-on-year (y-o-y) to Rs 1,819 crore, while provisions dropped 95% to Rs 271 crore. The bank’s net interest margin (NIM), a key measure of profitability, rose 10 basis points (bps) sequentially to 2.5%.

The advances book grew 8% y-o-y to Rs 1.81 trillion as on March 31. Retail advances accounted for 36% of the loan book at the end of March 2022, as against 33.7% a quarter ago. Deposits stood at Rs 1.97 trillion at the end of March, up 21% y-o-y and 7% sequentially. The current account savings account (CASA) ratio stood at 31.1% in Q4FY22, up from 26.1% a year ago.

Prashant Kumar, MD & CEO, Yes Bank, said that the lender is now acquiring more than a lakh CASA customers on a monthly basis. “The important point is that the growth in liabilities has come despite reductions in interest rate, a reflection of our superior customer service and stakeholder confidence,” he said.

The bank saw fresh slippages worth Rs 802 crore during Q4, lower than Rs 978 crore in the previous quarter. Corporate slippages fell to Rs 373 crore from Rs 435 crore in Q3, while retail slippages were down to Rs 333 crore from Rs 388 crore. Recoveries and upgrades stood at Rs 1,828 crore, up from Rs 1,182 crore in Q3FY22.

Yes Bank’s gross non-performing asset (NPA) ratio fell 80 bps sequentially to 13.9% and the net NPA ratio fell by a similar amount to 4.5%.

The capital adequacy ratio of Yes Bank as per Basel III, stood at 17.4% as on March 31. The common equity tier-I (CET-I) ratio was at 11.6% at the end of March.