Yes Bank’s net profit in Q3 dips 81%, IDFC & ICICI Bank see rise – Times of India


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NEW DELHI: Yes Bank has been the outlier among private lenders this quarter (ending December 2022), with its net profit dropping 81% even as other banks reported sharp increases in their profits. Other lenders that reported higher Q3 profits on Saturday include ICICI Bank, Kotak and IDFC.
Most banks have reported strong growth in profits as RBI’s successive interest rate hikes have enabled them to increase return on their loans, which have been growing strongly, even as interest rates on deposits inched up at a slower pace. Banks could grow loans faster than deposits as they have plenty of unused funds due to low credit demand in the previous financial year.
ICICI Bank reported a 34% increase in its profit after tax to Rs 8312 crore for the quarter ending December 2022 compared to Rs 6914 crore in the corresponding quarter last year. For the nine months ending December 2022, the bank reported a net profit of Rs 22,775 crore, a 39% increase over the year. The increase in net profit was mainly due to the jump in net interest income, which grew by 34.6% year-on-year to Rs 16,465 crore in Q3-2023 from Rs 12,236 crore in Q3-2022.
Yes Bank reported a net profit of Rs 51.5 crore, a drop of 81% from the third quarter in FY22. Yes Bank’s decline in net profit was despite the bank’s operating profit rising 17% to Rs 914 crore during Q3FY23. Despite a good operational performance, its bottom line took a hit because of an increase in provisioning to Rs 845 crore.
Announcing the results, Yes Bank MD & CEO, Prashant Kumar said that the bank had obtained legal opinion and decided to appeal against the order. The bank had received six weeks’ leave from the Bombay high court to appeal.
Kotak Mahindra Bank’s net profit rose 31% to Rs 2,792 crore in Q3FY23 from Rs 2,131 crore last year. The bank’s net interest income rose 31% to Rs 5,653 crore in Q3FY23 from Rs 4,334 crore a year ago.
Meanwhile, IDFC First Bank said that its net profit more than doubled to Rs 605 crore in the third quarter from Rs 281 crore in the corresponding quarter last year. The bank’s net interest income rose 27% to Rs 3,285 crore from Rs 2,580 crore in the third quarter of FY22.





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