YES Bank Q1 net profit misses estimates, shares fall

Private-sector lender YES Bank on Wednesday posted net profit of Rs 439.48 crore, up 9.6% on year due to a fall in provisions and growth in net interest income.

However, the figure was lower than the_CNBC-TV18_poll estimate of a 15 percent rise to Rs 460 crore.

The lender witnessed a marginal increase in its bad loans. Gross non-performing assets (NPAs) of the bank rose to 0.33 percent of total loans as compared with 0.22 percent in the corresponding period last year.

The bank’s net interest income rose 13 percent on year to Rs 745.34 crore.

The company’s provisions for the quarter came in 75 percent lower at Rs 23.74 crore.

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Shares of YES Bank were trading at Rs 540.55, down 1 percent on the NSE, while the benchmark Nifty was up 0.2 percent.

On Tuesday, Axis bank posted a 18% jump in its net profit aided by lower provisions, or money a bank needs to mandatorily set aside to cover bad loans. Net profit rose to Rs.1,667 crore in the three months ended 30 June from Rs.1,409 crore in the year earlier.

Early this week, India’s second largest private sector lender, HDFC Bank Ltd too posted a net profit of Rs 2,233 crore, lower than a CNBC-TV18 poll estimate of Rs 2,345 crore, hit by a sequential rise in the bad loan provisions.

While private sector banks, declared earnings, so far have posted good earnings, a clearer picture of banking sector earnings can emerge only after large state-run banks come out with numbers.

Canara bank, one among the leading state-run banks, early this week posted a marginal 1.86 per cent increase in net profit at Rs 806.86 crore in the first quarter hit by higher provisioning, as compared with Rs792.07 crore in the year ago period.