Net interest income (interest earned minus interest expended) rose 44% Y-o-Y to Rs 1,809 crore from Rs 1,256 crore in the corresponding quarter of previous fiscal year.
The higher net interest income driven by growth in advances & CASA, and steady expansion in net interest margin (NIM), which expanded to 3.7% from 3.6%, YES Bank said.
Analysts on an average had expected profit of Rs 916 crore on net interest income of Rs 1,742 crore.
Assets quality improved sequentially with gross non-performing assets, as a percentage of net advances by June 30, 2017, declined to 0.97% during the quarter under review, compared to 1.52% in March 2017 quarter. Net NPAs stood at 0.39% in Q1FY18 from 0.81% in Q4FY17.
“Our investments in Retail franchise are now demonstrating meaningful outcomes with significant momentum through robust CASA growth of 55.2% taking CASA ratio to 36.8% and core retail advances growth of 166%. At the same time the Bank continues to garner market share in its various corporate & MSME businesses while maintaining superior asset quality parameters,” said Rana Kapoor, managing director & CEO, YES Bank.
Meanwhile, the board of directors of the bank has approved stock split in the ratio of 5 for 1 i.e. sub-division of existing 1 equity share of face value of Rs 10 each fully paid up into 5 equity shares of Rs 2 each fully paid up.
At 03:09 pm; the stock was up 6% at Rs 1,709 on BSE, as compared to 0.47% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 8.27 million shares changed hands on BSE and NSE so far.