Yes Bank on Friday reported a net profit of Rs 129.37 crore for the September quarter, against a loss of Rs 600 crore in the corresponding quarter of previous fiscal. Yes Bank’s September quarter profit is backed by a decrease in operational expenses and widening of margins on a much lower loan book.

Yes Bank’s net interest income of the restructured bank increased 3.4 per cent on quarter on quarter basis to Rs 1,973 crore.

But, the non-interest income declined by a fourth to Rs 707 crore.

Its managing director and chief executive Prashant Kumar, who joined the bank from SBI, attributed the 21 per cent decrease in operational expenses at Rs 1,320 crore to branch and ATM rationalization, and re-negotiating with vendors and landlords for rents.

Bank’s gross non-performing assets (NPAs), stood at 16.9 per cent, down from 17.3 per cent in the previous quarter. Its net NPA was 4.71 per cent against 4.96 per cent in the previous quarter.

The overall quantum of NPAs came down during the quarter.

Kumar said Rs 2,391 crore of advances, which would have slipped to NPAs, were helped by the Supreme Court dispensation on asset recognition.

Other than this, Bank’s total exposure overdue for over 30 days stood at Rs 6,716 crore, which took the overall stressed pool of advances to Rs 9,000 crore.

On the provision front, the bank set aside over Rs 1,100 crore in Q2 to take the overall COVID-related provisions to Rs 1,900 crore which will cushion the impact of the pandemic on the loan portfolio, Kumar said.

He said loans to sectors such as hospitality and realty are showing stress at present.

In an investor presentation, the bank said 3.8 per cent of its advances are to the travel, tourism and hospitality sectors, while for real estate it is at 1.5 per cent.

Kumar said the bank is “very careful” on the advances front and is avoiding corporate segment. It is primarily lending to retail and small business borrowers.

The bank is targeting to lend Rs 10,000 crore in December quarter to retail segment (Rs 6,000 crore) and micro, small and medium enterprises (Rs 4,000 crore) segment, he added.

He, however, declined to share an overall loan growth estimate.

The bank, which raised Rs 15,000 crore in core capital after the Rs 10,000-crore bailout, reported an overall capital adequacy of 19.9 per cent, which included 13.5 per cent in core capital.

Shares of Yes Bank on Friday rose 4.95 per cent to close at Rs 13.35 apiece on the BSE.