Yes Bank

This was one of the very good numbers from a bank this first quarter – not only did the profits of Yes Bank beat all estimates but in terms of asset quality too, there has been improvement.

The Bank’s net profit for Q1FY18 grew 32% (YoY) at Rs.966 crore; this was on a 37% rise in NII at Rs.1810 crore and NIM rose 10 bps to 3.7%.

In terms of asset quality,  Gross NPA was down 60 bps at 0.97% and Net NPA halved to 0.4%. Clearly, one of the best banks currently in terms of asset quality! In Q4FY17, the Bank has an “extraordinary” NPA account and this has doubled its NPAs. This quarter, the Bank stated that it has recovered around 60% of this NPA in current Q1 but continued to retain the provision on the same. Its total provisions declined 8% (QoQ) at Rs.289 crore.

In terms of the “dirty dozen” the Bank is exposed to two accounts and the amount exposed stands at Rs.343 crore. In previous Q1, there was concern over its exposure to telecom sector; it was at 5% of total loans but this Q1, this exposure has come down 100 bps to 4%.

The total Standard Restructured Advances as a proportion of Gross Advances was at 0.24% or Rs 331.4 crore as at June 30, 2017, down from 0.36% (QoQ). There was no additional restructuring during the quarter.