Yes Bank's asset quality worsened in the quarter ended June 30 as its bad loans ratios rose sharply on a quarterly basis.

Analysts said the earnings miss might trigger some correction in the stock in the near term.

"Yes Bank quarterly numbers are bad. We had expected the bank to report net profit of Rs 170-180 crore and it is very bad compared to expectations. Asset quality has also worsened and Yes bank shares can witness a bout of correction," Avinash Gorakshakar of Joindre Capital told NDTV.

The bank's net interest income - the difference between interest earned and interest paid - rose 2.78 per cent to Rs 2,280.84 crore in the first quarter of current financial year, from Rs 2,219.14 crore in the year-ago period.

Net interest margin - a key indicator of a bank's profitability - slipped to 2.8 per cent in quarter ended June 30, from 3.3 per cent in the corresponding period a year ago.

Its gross non-performing assets as a percentage of total advances came in at 5.01 per cent compared with 3.22 per cent in the previous quarter.

Net non-performing assets (NPA) rose to 2.91 per cent in the June quarter, from 1.86 per cent in the previous quarter.

Provisions for loan losses surged to Rs 1,784 crore in the quarter, the bank said in its regulatory filing.

Yes Bank utilised Rs 1,399.30 crore from a provisioning pool of Rs 2,100 crore it had set aside for non-performing accounts which faced stress due to current market and liquidity conditions, it noted.