Shocked by quarterly results
Private sector Yes Bank’s net profit fell 79 per cent to Rs 55.07 crore in the December quarter due to higher financial provisions. Announcing the quarterly results on Saturday, the bank said higher provisioning for bad loans in the third quarter of the current financial year affected the bank’s profitability. The bank reported 10 percent growth in advance disbursements and 0.10 percent increase in net interest margin in the third quarter. Along with this, the bank’s core net interest income rose by 11.7 percent to Rs 1,971 crore. Also, the non-interest income of the bank increased by 55.8 percent to Rs. 1,143 crore and earned Rs 100 crore from the sale of corporate bonds.
Apart from this, Yes Bank’s total provisions have reached Rs 845 crore from Rs 375 crore annually in the October-December quarter. Prashant Kumar, the bank’s chief executive and managing director, said the provision has increased due to old bad assets. The bank has so far recovered Rs 4,300 crore of loans and expects to recover another Rs 1,000 crore in the last quarter of the current financial year, Kumar said.
Will climb the steps of the Supreme Court
Yes Bank will appeal to the Supreme Court against the Bombay High Court’s 2020 order in the Rs 8,400 crore AT-1 bond case, Kumar said. According to the bank there is a strong legal basis in favor of raising AT-1 bonds.
What should be the strategy for investment?
On the strategy of investing in bank stocks, experts said that there is a bullish scope, but if bought at a higher price, hold the stock for longer but do not increase the number of shares.