Private sector lender Yes Bank on Tuesday posted a net profit of Rs 45.55 crore for the quarter ended June 30 (Q1), down 60% year-on-year (YoY).
| Yes Bank | Q1 FY21 | Q4 FY20 | Q1 FY20 | QoQ% | YoY% |
| Total income | 6106.74 | 5818.59 | 9088.8 | 4.95% | -32.81% |
| Total expenditure | 4959.89 | 5712.18 | 7129.71 | -13.17% | -30.43% |
| Net Profit/Loss | 45.44 | -3668.33 | 113.76 | – | -60.06% |
Interestingly, Yes Bank has achieved profitability after posting losses for 3 consecutive quarters. Some key financial takeaways from the filing are :
- Operating Profits increased to Rs 1,147 crores, a growth of 11x quarter-on-quarter (QoQ).
- Net Interest Income (NII) rose to Rs 1,908 crores up 49.8% QoQ.
- Operating expenses declined 21.7% QoQ to Rs 1,382 crore.
- Total Provisions (Amounts set aside for expected loss) for Q1FY21 stood at Rs 1,087 crores, consisting of Rs 642 crores of COVID-19 related provisioning.
- Deposits stood at Rs 1,17,360 crores and grew 11.4% QoQ
- CASA ratio stood at 25.8% at the end of Q1.
Yes Bank was near bankrupt in March 2020 and was bailed out by a Reserve Bank rescue plan. Yes Bank had concluded their Further Public Offering (FPO) earlier this month and raised Rs 14,267 crores. While the FPO failed to achieve its target of Rs 15,000 crore, State Bank of India (SBI) covered the deficit. SBI’s stake in Yes Bank stands at 30% after the FPO.
“Rebuild Trust amongst stakeholders. Market share gains through Digital Capabilities”, is the current short-term vision of the troubled lender. The tie-up with leading UPI platform PhonePe, has helped Yes Bank maintain its stronghold in digital payments. The company still has a long way to go to become stable in the long run, and the Q1 results look like a good first step. But unfortunately, COVID-19 is yet to take its toll on the financial sector and Yes Bank’s future is still not clear.
Yes Bank (NSE:YESBANK) shares closed at Rs 11.90 on NSE down 3.6% after opening at the 10% revised lower circuit. You can read the complete BSE filing here.