Private lender Yes Bank on Saturday reported 81% decline in standalone net profit at Rs 52 crore for the quarter ending December 31, 2022 as against Rs 266 crore in the year-ago period.
The Mumbai-headquartered bank’s net interest income rose 12% to Rs 1,971 crore as against Rs 1,764 crore in Q2FY22.
The bank’s asset quality improved substantially during the quarter due to the transfer of stressed assets to the JC Flowers ARC. Yes Bank’s Gross NPA came down to 2.02% from 12.89% in the previous quarter. The Net NPA also dropped to 1.03% from 3.6% in September quarter.
The transfer of dud loans of over Rs 48,000 crore to the asset reconstruction company for Rs 8,046 crore assured 15% recovery to the bank.
On Friday, the bank’s scrip on BSE closed 2% lower at Rs 19.75.
Prashant Kumar, MD & CEO, Yes Bank said, “During the quarter, the bank successfully closed two deals which are strategic and transformational in this new journey of the bank. The successful capital raise has aided in significant expansion in our capital base, and post full consummation, our CET1 Ratio will reach an extremely comfortable level. Moreover, with successful transfer of stressed assets to the JC Flowers ARC, the GNPA and NNPA Ratios have now declined to 2% and 1% respectively, which is the lowest since Q3FY19. At the same time, the operational momentum of the bank continues with further step-up in Disbursements across segments and highest operating profit in the last eight quarters.”
Separately, the bank raised Rs 8,900 crore from private equity funds Carlyle and Advent. Pursuant to this, the bank received Rs 5,093 crore towards equity investments and Rs 948 crore towards warrants application. This is the second largest private capital raise transaction to take place in the Indian banking sector over the last two decades,” said the bank in a stock exchange filing.