Yes Bank, a private sector bank that was given life support by the central bank in 2020, has seen an 80% rise in net profit over the past year. This followed the horrors of 2020 when the bank was almost approaching bankruptcy in March. It went on a lending spree between 2014 and 2019, with advances rising over 335%.

Eventually, many of its loans turned into NPA while the depositors rushed to withdraw large amounts, with the bank approaching bankruptcy.The RBI interfered in 2020 and implemented a reconstruction plan after it had come on the brink of bankruptcy. However, by that time, Yes Bank share price had tanked.After the central bank saved it, CEO Prashant Kumar, in October 2021, said the bank would have no non-performing assets by the end of March 2022.

Yes Bank reported a 77% rise in net profits to Rs. 266 crore in the third quarter of 2022 compared to the previous year. Its provisions came down significantly from Rs. 2,089croreto Rs. 374 crore during the same period.Its net interest income had declined by over 30% to Rs. 1,764 crore in the third quarter YoY. Sequentially, its gross NPA ratio had improved to 14.7%.

Its fresh slippage stood at over Rs. 970 crore for the quarter under consideration. But there was a cash recovery of Rs. 610 crores and upgrades of over Rs. 570 crore.The Yes Bank share has declined nearly 100% in the past five years and over 20% in the past year alone. So far this year, it dropped almost 10%, underperforming the broader market by a margin.

However, its rising proportion of retail advances and moderation in slippages are two points in its favour. It has also seen a growth in net profit with improving asset quality, quarter-on-quarter. This is on the back of its increasing margins and interest income every quarter for the past three quarters.

Plus, foreign institutional investors and foreign portfolio investors increase their shareholding in Yes Bank shares. These factors, combined with recent news of the funding, havesent Yes Bank NSE surging. Its shares are close to a 52-week high in stock market.

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