In September, Yes Bank approved the transfer of stressed assets to JC Flowers. (file)
Mumbai:
Yes Bank on Saturday said its profit fell in the July-September quarter as it set aside more provisions for bad loans recorded in previous quarters.
The private lender’s net profit fell 32% from a year ago to 1.53 billion rupees ($18.5 million). According to data from Refinitiv IBES, analysts were expecting a profit of Rs 3.69 billion.
The bank’s asset quality improved as gross non-performing assets declined to 12.9% of total loans from 13.4% in the June quarter. Net non-performing assets declined from 4.2% to 3.6%.
The difference between net interest income, interest income from borrowings and interest income to depositors stood at Rs 19.91 billion, up 31.7%.
Provisions increased to Rs 5.83 billion from Rs 1.75 billion in the previous quarter.
In September, Yes Bank approved the transfer of stressed assets worth Rs 480 billion to private equity firm JC Flowers as it attempts to clean up its balance sheet.
Yes Bank CEO Prashant Kumar had earlier told Reuters that gross bad loans could come down to 2% in the June quarter from 13.4% after the bad loan transfer to the new asset reconstruction company.
The bank has been cleaning up its balance sheet after the financial situation severely deteriorated, posing a risk of contagion in the banking system, which prompted the central bank to put it under a reconstruction plan in March 2020.
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