Net interest income increases by 16% Qoq to Rs 1,764 Crore; Operating profit up 7.7% to Rs 731 Crore

Yes Bank Limited today reported net interest income (NII) of Rs 1,764 crore, up 16% quarter-on-quarter, while its net interest margin increased by 2.4 %QoQ, up 25bps, helped by a reduction of around 30bps in the cost of deposits, to 4.9%. The bank also reported record retail fee income of Rs 447 crore.

In its quarterly earnings report, the bank announced an operating profit of Rs 731 crore for the last quarter, a QoQ increase of 7.7% from Rs 678 crore in the previous quarter. The bank’s after-tax profit stood at Rs 266 crore, an increase of 18.2 QoQ; its PAT at T2FY22 stood at Rs 225 crore.

Its operating expenses amounted to Rs 1,767 crore, up 9.6% from the previous quarter, thanks to a sustained momentum in commercial activity during the quarter. The bank said more than one million CASA accounts had been opened in a month for the very first time; its CASA ratio was 30.4% and continues to grow at a rate of approximately 200% of overall deposit growth.

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The bank reported net advances at Rs 1,76,241 crore, up 2% QoQ, and total deposits at Rs 1,84,288 crore, up 4.3% QoQ;.

The bank’s gross non-performing asset ratio improved to 14.7% in Q3FY22 from 15% in the prior quarter, while its net NPAs were 5.3% from 5.5% last quarter.

The bank reported sustained momentum in the new generation of businesses – its retail disbursements stood at Rs 9,313 crore, while its disbursements for small and medium enterprises (SMEs) were Rs 4,940 crore. The bank reported wholesale disbursements of Rs 4,740 crore.

During the last quarter, the bank opened 22 new branches and added 1,065 employees during the nine months of the fiscal year.

In the report, the bank said it leads in P2M UPI transactions and said it grabs around 42% of the market in this segment, and also claims the top spot as a remitting bank in IMPS transactions.

The firm said its resolution momentum continued with Rs 610 crore in cash recoveries and Rs 573 crore in upgrades during Q3FY22. Its balance sheet crossed Rs 3 lakh crore for the first time since September 2019, up around 6% QoQ.

The bank added that it dincreased penetration of emerging rural markets and generating lending to the priority sector of agriculture; it shelled out Rs 887 crore in Q3FY22, according to the report.

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