YES Bank Q1 profit rises 50% to Rs 311 cr on account of income growth

YES Bank on Saturday reported 50 per cent increase in net profit at Rs 311 crore for June quarter 2022-23 on fall in provisions for bad loans, and healthy income growth.

The bank had clocked a net profit of Rs 207 crore in the year-ago period, it said in a regulatory filing.

Total income during the quarter rose to Rs 5,916 crore as against Rs 5,394 crore in the same period of 2021-22.

The private sector lender improved on its bad assets with gross non-performing assets (NPAs) falling to 13.45 per cent of gross advances as of June 30, 2022 from 15.60 per cent by June-end 2021.

Net NPAs or bad loans too came down to 4.17 per cent from 5.78 per cent.

Provisions for bad loans and contingencies for the quarter under review fell to Rs 175 crore from Rs 457 crore in the year-ago period.

The bank has successfully come out of the Reconstruction Scheme with formation of alternate board with effect from July 15, 2022, pursuant to shareholders' approval, the filing said.

"The new board has recommended appointment of Prashant Kumar as MD and CEO for three years, subject to approval of the Reserve Bank of India and shareholders," it said.

Also, the bank has signed a binding term sheet with JC Flowers to form an asset reconstruction company with the objective of sale of an identified pool of nearly Rs 48,000 crore of stressed assets.