Yes Bank reveals Q1 results

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Yes Bank Limited is a well-known private sector bank in India. Their headquarters is located in Mumbai and was founded by Rana Kapur and Ashok Kapur in 2004. They offer a wide range of banking and financial products for corporate and retail customers through retail banking and asset management services. The Reserve Bank of India (RBI) took control of the bank on 5th March 2020 as an attempt to avoid the collapse of the bank, which had an excessive amount of bad loans. After that Reserve Bank of India has reconstructed the board and named Prashant Kumar, former Chief Financial Officer (CFO) of SBI, as new MD & CEO at Yes Bank. Now it is owned by State Bank of India who has a 30% stake in the company as of 28th July 2020. They have interests in Syndicate loans and Corporate banking and have three subsidiaries also, they are Yes Bank, Yes Capital, and Yes Asset Management Services. State Bank of India invested Rs 7,250 crore in the bank on March 2020 amid the financial crisis and remains 49% stake capital owner of Yes Bank. At the point of reconstruction, seven investors infused 12000 crores in Yes bank, and Mr. Prashant Kumar was appointed as the new CEO of the bank. The investors include State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Rakesh Jhunjhunwala, Radhakishan Damani, and Azim Premji trust.

Now the Bank disclosed their Q1 results. On Tuesday they reported a 60.05 percent Year-on-Year (YoY) with a fall in the net profit at Rs. 45.44 crores for the first quarter which is ended on 30th June 2020. The reports show that in the corresponding Quarter of the last year the lenders had posted a net profit of Rs. 113.76 crore. The total provisions regarding the quarter first of FY21 stood as Rs. 1,087 crore, which consists of Rs. 642 crore of COVID-19 related provisions and the last year it was Rs. 1,784.1 crore. The next element is the Net Interest Income (NII), it was at a rate of Rs. 1,908 crore and down to 16.8 percent from Rs. 2,281 crore Year-on-Year. 3 percent was the net interest margin, up by 109 bps and 20bps which is against the Q1FY19.  The bank said that their operating profit was at Rs. 1,147 crore, which is growing about 11 times aided by higher rates of NII and lower operating expenses, and the same was down by 41 percent YoY. Deposits grew by 11.4 percent and aided by 26.4 percent of the QoQ rate. In the case of current account deposits, the growth rate is 12.6 percent. The rate on a Gross non-performing asset for the quarter from 16.80 percent to 17.30 percent and earnings per share dropped by 92.6 percent.

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