YES Bank’s net profit grows four fold as provision for bad loans shrink

• YES Bank has reported its highest net profit since December 2018 at ₹207 crore.
• The bank expects impact from the pandemic to ease down from hereon and sees recovery in retail and wholesale loans.
• Net interest income of the private sector bank jumped 42% to ₹1,402 crore in April-June quarter.

Yes Bank reported a four-fold jump in its net profit to ₹207 crore in June quarter compared to a profit of ₹45 crore the same time last year. This is the highest profit for the private bank since December 2018.

The sudden jump in profit is because of the lower provisions made for bad loans held with the bank. It has lowered provisions by 88% to ₹644 crore in June. The bank also expects the provision requirement to go down going ahead.

The private lender’s total deposit rose 39% year-on-year to ₹1.63 lakh crore while net advances fell by 1% year-on-year to ₹1.63 lakh crore.

Net interest income of the private sector bank jumped 42% in the quarter to ₹1,402 crore in April-June quarter.

Prashant Kumar, managing director and chief executive officer at Yes Bank, expects the pandemic’s impact to ease hereon. The bank is targeting a 15% credit growth in the current financial year — 10% from corporate loans and 20% from retail and micro, small and medium enterprises loans.

SEE ALSO: Deepinder Goyal’s stake in Zomato is now worth more than $700 million

Uber made a billion dollars from Zomato’s listing, without spending a single penny