Mumbai, Jan 17 : Private sector lender YES Bank on Saturday reported a 55 per cent jump in profit to Rs 952 crore in the December quarter, aided by a sharp fall in provisions.
The city-headquartered bank had reported a net profit of Rs 612 crore in the year-ago period and Rs 654 crore in the preceding September quarter.
YES Bank had to make a Rs 155-crore provision because of the implementation of new labour codes towards gratuity.
Its core net interest income grew 10.9 per cent to Rs 2,466 crore on the back of 0.10 per cent expansion in the net interest margin and a loan growth of 5.2 per cent.
YES Bank Managing Director and Chief Executive Prashant Kumar said the bank is “cautious” on new loans due to which the loan growth is lower than the banking system’s double-digit performance.
There is a pricing battle on the corporate loans front, while the home and auto loans are not profitable given the high cost of funding for the bank, Kumar said.
The bank is targeting a loan growth of 8 per cent for FY26, Kumar said.
For the reporting quarter, the non-interest income grew 8 per cent to Rs 1,633 crore.
From an asset quality perspective, gross slippages reduced to Rs 1,050 crore from Rs 1,248 crore in the quarter-ago period. The gross non-performing assets ratio improved 0.10 per cent to 1.5 per cent.
The overall provisions improved to Rs 21.89 crore as compared to Rs 259 crore in the year-ago period, leading to the benefits on bottomline expansion.
The slippages and delinquencies in the unsecured loan segment, including exposures on credit cards and personal loans, are coming down, Kumar told reporters.
A bulk of the loan growth came from the commercial banking segment during the quarter, he added.
Kumar declined comment on Japanese lender and the biggest shareholder in YES Bank, SMBC’s decision to start a wholly owned subsidiary in India or if he is keen to continue at the lender after his term ends in April.
The bank has initiated a succession plan, he said, without going into specifics.
The overall capital adequacy for the lender stood at 14.5 per cent as of December and Kumar said it does not have any plans of raising more funds. (PTI)
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