YES Bank Q2 Results: Profit slips 32% YoY to Rs 153 crore even as NII jumps

However, the private sector lender reported a 32% YoY increase in the net interest income (NIIs) to Rs 1,991 crore for the second quarter of the current fiscal. NII stood at Rs 1,512 crore in the year-ago period.

The lender reported a 17% YoY rise in the operating profit to Rs 790 crore for Q2FY23, the highest ever in the last seven quarters.

Net interest margins (NIMs) increased by 40 bps to 2.6% during the said period. Non-interest income for Q2FY23 came in at Rs 920 crore, up 18% YoY.

Gross NPAs improved to 12.89% in the September 2022 quarter from 13.45% in June 2022 quarter and 14.97% a year ago.

Net NPAs, as against 4.17% in Q1FY23 and 5.55% in Q2FY22, stood at 3.6% in Q2FY23, the lender said. Slippages dropped lower at Rs 896 crore against Rs 1,783 crore in Q2FY22 and Rs 1,072 crore in Q1FY23.

However, provisons remain a concern for the troubled lender, which rose 54% on a YoY basis to Rs 583 crore during the quarter.

The cost-to-income ratio improved to 72.8% in the given quarter, compared with 77.6% in the previous quarter.

YES Bank’s operating expenses were up 23% YoY at Rs 2,121 crore for period, largely driven by higher IT spends, employee increments and insurance costs, the lender said in a media release.