India's Yes Bank quarterly profit falls 32% on provision set-asides
MUMBAI (Reuters) - India's Yes Bank said on Saturday its profit fell in the July-September quarter as it set aside more provisions for bad loans recorded in previous quarters.
The private lender's net profit declined 32% from a year ago to 1.53 billion rupees ($18.5 million). Analysts had expected a profit of 3.69 billion rupees, according to Refinitiv IBES data.
The bank's asset quality improved as gross non-performing assets declined to 12.9% of total loans from 13.4% in the June quarter. Net non-performing assets declined to 3.6% from 4.2%.
Net interest income, the difference between the interest income from lending and that out to depositors was at 19.91 billion rupees, up 31.7%
Provisions rose to 5.83 billion rupees from 1.75 billion rupees the previous quarter.
In September, Yes Bank approved the transfer of stressed assets worth 480 billion rupees to private equity firm J.C. Flowers as it attempts to clean up its balance sheet.
Prashant Kumar, CEO of Yes Bank, earlier told Reuters believed gross bad loans can come down to 2% from 13.4% in the June quarter after transferring the bad loans to the new asset reconstruction company.
The bank is cleaning up its balance sheet after its financial position had seriously deteriorated, sparking contagion risk in the banking system that prompted the central bank to put it under a reconstruction scheme in March 2020.
($1 = 82.5290 Indian rupees)
(Reporting by Nupur Anand and Rajendra Jadhav; Editing by William Mallard)
