InvestorQ : How did Yes Bank manage such fancy results in the Sep-20 quarter?
Anjana Aiyar made post

How did Yes Bank manage such fancy results in the Sep-20 quarter?

Khushi Patel answered.
7 months ago

Yes Bank reported net profit of Rs.129.4 crore for the quarter ended Sep-20 in contrast to a loss of Rs.600 crore in the quarter ended Sep-19. Even in the previous quarter ended Jun-20, Yes bank reported profits of Rs.45.44 crore profit. This is the second quarterly reporting after Prashant Kumar took over as CEO.

However, the net interest income or NII as it is better known, narrowed by 9.7% to Rs.1973 crore from Rs.2186 crore in Sep-19. The street consensus was an overall net loss of Rs.307 crore and NII of Rs.1842 crore; both of which have been bettered.

Net advances of the bank grew 1.5% at Rs.166,923 crore on the back of a solid pick-up in the retail disbursements. Even the deposits rose sharply by 15.7% at Rs.135,815 crore. In addition, the provisions and contingencies fell by 11.2% at Rs.1187 crore in Sep-20 quarter.

The provision coverage ratio of the bank improved to 75.7% after the recent provisions for COVID were also included. Gross NPAs remain a worry at 16.90% of advances while the net NPAs at 4.71% indicates that substantial losses are already provided for.

The good news for Yes Bank in analytical terms was that the cost to income ratio or C/I ratio at 49.3% was at the lowest level in the last five quarters. Holding patterns indicate that retail and HNIs investors had enhanced their stake in Yes Bank.