Yes Bank Q2 net up 25%; bad loans jump

Yes Bank Q2 net up 25%; bad loans jump

Net interest income (NII) or the core income a bank earns by giving loans rose 20.75% to Rs9,652.07 crore versus Rs7,993.59 crore a year ago.

Mumbai: HDFC Bank Ltd on Tuesday reported a 20.1% jump in its September quarter net profit due to higher net interest income and other income.

The private sector bank said this was driven by steady growth in advances, current account, savings account (CASA), and expanding margins. Net interest margin expanded to 3.7 per cent from 3.4 per cent in the year-ago quarter.

The bank made provisions worth Rs 447 crore against Rs 285 crore in June quarter and Rs 162 crore in the September quarter of previous year.

"Bank's asset quality continues to demonstrate resilience after duly incorporating full impact of the RBI RBS observations for FY17, concluded in October 2017", said Rana Kapoor, Managing Director & CEO of the bank.

Advances grew by 35 per cent y-o-y to ₹1,48,675 crore.

Kapoor also pointed out that of the total divergences constituting 19 corporate loan accounts of seven group companies, 47 percent of the amount, amounting to 12 loan accounts, were upgraded; 27 percent of the loans were repaid; 7 percent (three accounts) were sold to asset reconstruction companies and rest 19 percent (four accounts) worth Rs 1,219.4 crore were classified as NPAs.

As on March end, 2017, Yes Bank had reported gross NPAs of Rs 2,018.6 crore as against RBI's assessment of Rs 8,373.8 crore in the same period.

The bank reported a profit of Rs4,151.03 crore up from Rs3,455.33 crore a year ago.

The adjusted (notional) net profit for FY17 after taking into account the divergence in provisioning is ₹2,316 crore against ₹3,330 crore reported by the bank.

However, provisions rose on the back of an increase in bad loans with gross non-performing assets jumping threefold to ₹2720.3 crore which was 1.82% of gross advances as compared with ₹916.7 crore or 0.83% a year earlier and 0.97% as on June 30.

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