Yes Bank on Thursday reported a net profit of Rs 1,002.7 crore for the July-September quarter, about 25% higher than in the same quarter in 2016. This was below the estimate of Rs 1,035.5 crore as pegged by analysts.
The private lender’s bad loans, meanwhile, rose sharply, and had significant divergence from what the Reserve Bank of India’s inspection report had assessed for 2016-’17. The bank reported gross bad loans that were Rs 6,355 crore lower than the central bank’s assessment, Mint reported.
Gross bad loans rose to Rs 2,720.3 crore as on September 30, much higher than Rs 916.7 crore in 2016 and Rs 1,364.4 crore as on June 30. The figure was 1.82% of the total loans till September-end, as against 0.97% till June-end.
The bank’s performance has parallels to that of Axis Bank, which on October 17 reported decline in asset quality with gross non-performing assets increasing to 5.90% from 5.03% in the previous quarter. Axis Bank had also reported a sharp difference between the bank’s internal assessment of bad loans and the Reserve Bank of India’s figures for the 2016-’17 financial year.
Yes Bank reported a net interest income – the income a bank earns by giving loans – of Rs 1,885.1 crore, higher by almost a third from 2016.
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