Yes Bank shares surged 20 percent on Thursday after the lender reported better than expected earnings for the March quarter. The private lender posted a net profit of Rs 2,628.6 crore on the back of a one-time gain attributed to an exceptional item of Rs 6,296 crore.

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Excluding exceptional items, it reported a net loss of Rs 3,668.3 crore. In the corresponding quarter last year, the Mumbai-headquartered bank posted a net loss of Rs 1,506.64 crore. A CNBC-TV18 poll had predicted a loss of Rs 4,438.3 crore for the quarter under review.

The stock surged 20 percent to Rs 31.60 per share on BSE. At 10:31 am, the stock was trading 8.3 percent higher at Rs 28.55 as compared to a 0.6 percent, or 196 points, fall in the BSE Sensex at 31,488.

For FY20, as a whole, Yes Bank posted a massive loss of Rs 16,418 crore on a standalone basis compared to a net profit of Rs 1,720.27 crore.

The bank’s net interest income (NII) for the March quarter came in at Rs 1,274 crore, up 19.56 percent sequentially. The income, however, tanked 49 percent YoY.

The bank has set aside Rs 238 crore provisioning for the impact of COVID-19 (for standard assets) and its advances dropped 29 percent YoY to Rs 1,71,443 crore, it said in a regulatory filing.

The bank, which is now headed by the former SBI CFO Prashant Kumar, showed a marginal improvement in the gross non-performing assets ratio at 16.80 percent in the March quarter as against 18.87 percent in the third quarter.

Gross non-performing assets (NPA) fell 19 percent QoQ to Rs 32,878 crore, mostly on account of write-offs. Gross NPAs as a share of gross advances stood at 16.8 percent compared with 18.87 percent in the December quarter.

Total provisions, too, declined sequentially to Rs 4,872 crore compared to Rs 24,766 crore in the December quarter.