Mumbai: Yes Bank said on Wednesday its first-quarter net profit dropped 90.97 percent to Rs 113.76 crore during three months ending June 30 due to lower other income and higher provisioning.
The private sector lender had posted a net profit of Rs 1,260.36 crore in the year-ago period.
Net interest income — the difference between interest earned on loans and that paid on deposits, increased 2.8 percent to Rs 2,280.84 crore in Q1 FY20 from Rs 2,219.14 crore in the corresponding period last year.
But other income, which includes core fee income, dropped 24.88 percent to Rs 1,272.66 crore in the three months from Rs 1,694.14 crore a year ago.
Yes, Bank’s provisions during the quarter increased 185 percent to Rs 1,784.11 crore as against Rs 625.65 crore in the year-ago quarter.
The bank’s gross non-performing assets (NPAs) as a percentage of total advances 5.01 percent (Rs 12,092 crore) in the June quarter compared to 1.31 percent in the year-ago period. Post-provision, the net NPA ratio was at 2.91 percent (Rs 6,883 crore).
“This was a ‘quarter of consolidation’ in which the bank has demonstrated strong resilience in revenues and asset quality. We believe that the earnings trajectory should strengthen significantly from hereon,” it said in a statement.