Private sector lender Yes Bank reported a ₹600 crore net loss for the July-September quarter of the current financial year as compared ₹964 crore profit during the same period of the previous financial year due to one-time adjustment of deferred tax assets, even as bad loans mounted.
Excluding the one-time DTA impact, the profit would have been ₹109 crore, the bank said.
Gross slippages to bad loans stayed elevated, at ₹5,950 crore during the quarter and the bank said the number had fallen when compared sequentially. Slippages from the ‘BB’ and below book was ₹3,730 crore and ₹2,220 crore from outside the ‘BB’ and below book.
As a result, gross non-performing assets shot up to ₹17,134 crore as on end September as compared to ₹3,866 crore a year ago. Gross NPA as on end June was ₹12,092 crore.
The gross NPA ratio, as on September 30 was 7.39% as compared to 1.6% a year ago and 5.01% at the end of April-June quarter.
Due to high slippages, provisions went up to ₹1,336 crore during the second quarter as compared to ₹939 crore.
The cost to income ratio also shot up to 53.4% in Q2 from 39.2% a year ago.
Net interest income for the quarter was ₹2,190 crore which is 4% lower sequentially and 9.6% year-on-year. The bank has attributed this fall to a 7% sequential decline in assets and impact of ₹200 crore due to slippages.
An asset stops earnings interest when it becomes non-performing, impacting interest income. Net interest margin also fell both sequentially and on year-on-year basis, to 2.7% from 2.8% in the previous quarter and 3.3% in the year ago period. The non-interest income fell by a whopping 36% year-on-year to ₹945 crore.
The advances book of the bank contracted 6.3% year-on-year and 5% sequentially to ₹2,24,505 crore. Deposit book also contracted 6% on year and 7.3% sequentially to ₹2,09,497 crore. Yes Bank shares ended 5.5% lower to close the day at ₹66.60.
