Mumbai: Doubling of provisions led private sector lender Yes Bank on Saturday to post a 45 per cent decline in its March quarter net at Rs 202 crore.
For the entire fiscal FY23, the bank witnessed a 32.7 per cent decline in its net profit at Rs 717 crore, it informed the stock exchanges.
The bank’s core net interest income grew 15.4 per cent in the March quarter to Rs 2,105 crore on the back of a 0.30 per cent expansion in the net interest margin to 2.8 per cent and an over 12 per cent credit growth.
The overall deposits grew by over 10 per cent.
The non-interest income was up 22.8 per cent to Rs 1,082 crore, and was led by core fee income, especially the one coming from retail side.
Its overall provisions in the reporting quarter were up 127 per cent to Rs 618 crore, which dented the bottom line and was one of the prime reasons for the drop in profits.
Provisions for non-performing advances shot up to Rs 1,311 crore, as against Rs 227 crore in the year-ago period.
On the asset quality front, the bank, which transferred nearly Rs 50,000 crore of dud assets to an asset reconstruction company, reported gross non performing assets ratio at 2.2 per cent, as against 2 per cent in the December quarter, on the back of nearly Rs 1,200 crore in slippages.
Yes Bank managing director and chief executive Prashant Kumar said he expects the slippages to trend down in FY24, without giving a number.
The bank is targeting a 15-20 per cent loan growth in FY24 led by the retail segment at 30 per cent, Kumar said, adding that the large corporate segment is expected to grow at 5 per cent after two years of fall.
Exposure to the large corporate segment, which had got the bank to a brink three years ago, resulting in a massive rescue act, is now down 40 per cent from the peaks, Kumar said, adding that it went down 26 per cent in FY23 alone.