Yes Bank posted its highest quarterly profit since December 2018 on the back of a 41% fall in provisions.

The private lender reported a 355.2% jump in net profit to Rs 207 crore for the fiscal first quarter ended June compared to Rs 45 crore in the year-ago quarter.

The bank’s net interest income (NII), difference between interest earned and interest expended, dropped 26.5% year-on-year to Rs 1,402 crore from Rs 1,908 crore a year ago. Net interest margin in the quarter was 2.1%, down from 3% in the year-ago quarter.

Operating profit slumped 19.8% to Rs 920 crore, from Rs 1,147 crore in Q1 FY21.

Non-interest income rose 70% in the June quarter to Rs 1,056 crore versus Rs 621 crore a year ago.

Provisions fell to Rs 644 crore, from Rs 1,087 crore in the year-ago period.

Corporate recoveries and resolutions stood at Rs 1,643 core, which far outpace slippages of Rs 1,258 crore and almost entirely offset total slippages, Yes Bank said in a regulatory filing on Friday.

The bank’s gross non-performing assets (NPAs) rose to 15.60% compared to 15.41% in the prior quarter. Net NPA, though, declined sequentially to 15.78%. Provision coverage ratio improved sequentially to 79.3%.

Gross NPAs in the June quarter stood at Rs 28,506 crore while cash recoveries were at Rs 602 crore.

Advances fell marginally to Rs 1,63,654 crore in Q1 FY22, from Rs 1,64,510 crore in the earlier-year quarter. Retail and small business loan book grew 23%.

Deposits rose 39% year-on-year to Rs 1,63,295 crore compared to Rs 1,17,360 crore in the year-ago quarter.

The current account savings account (CASA) ratio stood at 27.4%, up from 25.8% a year ago. Around 1.5 lakh CASA accounts were opened in Q1 FY22, Yes Bank said.