YES Bank net rises 28% on loan growth

To raise $1 billion via share sale

YES Bank on Wednesday reported a 28.1 per cent rise in net profit at Rs 551 crore for the March quarter, on higher interest income and a healthy growth in advances to retail and small and medium enterprises (SME).

Total advances grew 35.8 per cent, driven by retail and SME, which grew 50 per cent in the reporting quarter, taking the overall share of retail and MSME/business banking in advances to 35.3 per cent as on March 31, 2015.

Deposits grew 23 per cent overall, while current and savings account deposits rose to 23.1 per cent from 22 per cent in the previous financial year.

“Total income has increased from Rs 3,013.57 crore for the quarter to Rs 3,678.83 crore,” said Chief Financial Officer Rajat Monga.

Net interest income rose 35.8 per cent to Rs 977.1 crore despite a flat net interest margin sequentially at 3.2 per cent, marginally up from three per cent from the year-ago period. The non-interest income grew 32.5 per cent to Rs 590.4 crore.

Net non-performing assets increased to 0.12 per cent of its total advances from 0.05 per cent a year ago, while gross non-performing assets (NPAs) grew to 0.41 per cent from 0.31 per cent.

On restructured accounts, Monga said the bank rescheduled three accounts in the quarter, including a Rs 160-crore road project which constituted 90 per cent of the restructured book, he said and expressed hope the project returned to productivity soon.

The private sector lender also said its board approved a plan to raise up to $1 billion (approximately Rs 6,000 crore) by selling stock in local or foreign markets to shore up its capital base.

The bank needs approval from shareholders and regulators before it goes ahead with the sale, Monga told reporters. He did not give a timeline for the sale but said the funds will mostly be used for growth.

He also said the bank will announce a bond issuance plan, which will be a combination of infrastructure and green bonds, in two to three weeks. “We plan to raise up to Rs 2,000 crore a quarter this year as part of the Rs 10,000-crore bond-raising programme,” he said.