For the second quarter of 2019-20, Yes Bank posted a loss of Rs 600 crore on Friday due to higher provisions, lower income and primarily from a one-time deferred tax asset (DTA) adjustment of Rs 709 crore. In the same period of the previous year, the private bank had posted a profit of Rs 965 crore.
If the one-time tax burden were to be excluded, the lender would have reportedly made a profit of Rs 122 crore, considering the 42 percent increase in provisions for the September-ended quarter at Rs 1,336.25 crore. The net profit would have been 91 percent lower than the same period of the previous year.
Further, the bank's operating performance was weaker than the second quarter of 2018-19. It reported a 38 percent year-on-year fall in operating profit at Rs 1,458 crore in the quarter under review.
Yes Bank's net interest income (NII) for the quarter was down by 9.6 percent at Rs 2,186 crore from a year ago with net interest margin (NIM), a key measure of its profitability, down by 60 basis points to 2.7 percent from the previous year.
Its asset quality deteriorated with an increase in gross NPAs (non-performing assets) to 7.39 percent of total loans up from 1.6 percent in the last year.