Yes Bank has released its quarterly results for Q1 FY 2021-22. The private sector bank reported net profit at Rs 207 crore, up by 355.2% on a year-on-year basis, the highest in the last 10 quarters. The bank had reported a net loss of Rs 3,788 crore in the quarter ended March 31, 2021 and a net profit of Rs 45 crore in the first quarter of last fiscal.
The strong bottomline came on the back of a 41% year-on-year (y-o-y) fall in provisions and non-interest income that grew by 70% y-o-y to Rs 1,056 crore against Rs 621 crore in Q1 FY2021. NPA ratio also saw sequential decline to 5.78%.
The Net Interest Income (NII) was recorded at Rs 1,402 crore, up 42.1% q-o-q but down 26.5% on a y-o-y basis. The Net Interest Margin (NIM) during the quarter stood at 2.1%. Total deposits for the bank grew 39% y-o-y – from Rs 1,17,360 crore to Rs 1,63,295 crore within the year.
As of the end of the trading day on 23rd July 2021, shares of the bank closed at Rs 13.1, an increase of 0.8% from the start of the session.
Yes Bank made a recovery and posted the highest net profit of Rs 207 crore in Q1 FY2022. The recovery comes from a loss of Rs 3,788 crore in the last quarter. The bank took measures by reducing its provisions and increasing its non-interest income to bring about this U-turn in revenue. While market analysts expected the bank to post a loss, the bank has surpassed the expectations. This shows that the bank’s management may see some growth in future.