Yes Bank records 32% rise in net profit in Q1

Yes Bank reported a 32 per cent rise in net profit to Rs 966 crore in the quarter through June, driven by strong loan demand. The lender reduced its non-performing assets because a large cement account that had turned bad was recovered.

Here are a few takeaways from the results:

Strong loan growth: At 32 per cent, the bank’s loan growth was more than five times that of the banking system.The growth was led by demand for loans from both companies and individuals.

Yes Bank is a predominantly corporate lending bank, but its retail loan book has grown more than two-and-ahalf times during the quarter, driven by loans to buy vehicle and to fund personal consumption. CEO Rana Ka poor expects the 30 per cent loan growth to continue this fiscal year, in line with a recovery in the economy.

Asset quality improves: Yes Bank recovered Rs 546 crore from a large cement account that had been classified as an NPA in the previous quarter. This helped reduce its total stressed loans to 1.63 per cent of the loan book from 2.24 per cent in March.

Digital Push: Yes Bank is moving transactions to the digital channel. As a result, it reduced branch expansion target to 1,800 by March 2020 from the previous plan of 2,500. Investments in new ATMs will also be curtailed, Kapoor said. The bank plans to build a new back-office system in Chennai.

Source