Yes Bank, for Q2FY19 recorded a 4% (YoY) decline in net profit at Rs.965 crore. This includes an impact of Rs.252 crore on account of one time MTM provisioning, predominantly on corporate bonds. After excluding investment related MTM provisions and profit on sale of investments Adjusted Net profit grew by 36%.
The Bank’s NII grew 28% (YoY) at Rs.2418 crore while NIMs were stable at 3.3%.
Coming to the asset quality, Yes Bank’s Gross NPA was at 1.6% v/s 1.31% (QoQ) and Net NPA too showed an increase from 0.59% to 0.84%. The Bank has said that its Gross slippages stood at Rs.1632 crore, which includes an account with exposure of Rs. 631 crore classified as NPA based on post period end review process. The Bank expects prepayments and consequent upgrade in this account in Q3FY19. The Bank’s account with an exposure of Rs.446 crore was sold to an ARC during Q2FY19.
The Bank has a as loan exposure to subsidiaries of IL&FS worth Rs.2621 crore and said that this was very ‘standard.’
The market is obviously not looking at this like a ‘standard’ norm and in the opening bell trade itself, the stock price tanked 15% to Rs.168.60, which is very close to its 52-week low of Rs.166.15. As our Editor, SP Tulsian said, this results are not bad but for the market in Yes Bank, this is no longer the trigger.