India’s Yes Bank reports surprise 80% plunge in quarterly profit

MUMBAI, Jan 21 (Reuters) – India’s Sure Financial institution (YESB.NS) reported a shock 80% plunge in quarterly revenue on Saturday as provisions for unhealthy loans elevated.

Web revenue fell to 515.20 million rupees ($6.36 million) for the three months by means of December from 2.66 billion rupees in the identical interval a 12 months earlier. Analysts had anticipated revenue to rise to three.36 billion rupees, in response to Refinitiv IBES knowledge.

However internet curiosity margin, a key indicator of a financial institution’s profitability, rose 10 foundation factors to 2.5%.

The financial institution’s asset high quality improved as gross non-performing property declined to 2.02% of complete loans from 12.89% within the September quarter. Web non-performing property declined to 1.03% from 3.60%.

Web curiosity revenue, the distinction between the curiosity revenue from lending and that paid to depositors rose 11.7% to 19.71 billion rupees.

Provisions elevated to eight.44 billion rupees from 5.82 billion rupees the earlier quarter.

Sure Financial institution in December accomplished the switch of unhealthy loans value 480 billion rupees to personal fairness agency J.C. Flowers, in a deal aimed toward cleansing up its stability sheet.

The lender’s mortgage progress improved by 10% whereas deposits rose 16%.

That is opposite to the development in India’s banking trade. Financial institution loans rose almost 15% within the fortnight to Dec. 30 from a 12 months earlier, outpacing a 9.2% improve in deposits, in response to the newest knowledge from the Reserve Financial institution of India.

($1 = 80.9790 Indian rupees)

Reporting by Nupur Anand and Siddhi Nayak; Modifying by William Mallard

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