Yes Bank Ltd. reported second-quarter net profit fell 32.2%to ₹152.8 crore from ₹225.50 crore in the year earlier period, largely due to ageing related provisioning requirement during Q2FY23.
During the quarter the bank’s advances grew 11% year-on-year, deposits 13% and balance sheet 16% . GNPA ratio was at 12.9% against 15.0% in Q2FY22. NNPA ratio was at 3.6% against 5.5% in Q2FY22. Slippages were lower at ₹896 crore against ₹1,783 crore a year earlier. “Resolution momentum continues with total recoveries and upgrades for Q2FY23 at ₹1,586 crore which is well on track to achieve the FY23 guidance of ₹5,000 crore,” the bank said in a filing. The board and shareholders approved a capital raise of nearly ₹8,900 crore via preferential issue to two private equity investors – Carlyle and Advent International. The Board approved JC Flowers ARC as winner of Swiss Challenge process; expected closure in Q3FY23 - transaction set to be largest sale of stressed assets deal in India.
Prashant Kumar, MD & CEO, Yes Bank said Q2FY23 had been a significantly important quarter in this new journey of the bank. He said the bank was close to completion of successful transfer of its identified pool of stressed assets to the JC Flowers ARC.
“On the operational front, the business momentum continues with operating profit at nearly ₹800 crore, which is highest in the last seven quarters, and consistently improving asset quality with NNPA now below 4% for the first time since September 2019,” Mr. Kumar said.
“As the banking industry navigates the rising and volatile interest rate environment, wherein deposit generation along with balance sheet growth is emerging as a priority, we are geared up with a superior platform and expanded workforce to successfully execute the next growth phase of the bank,” he added.