Yes Bank Q1 net up 56% at Rs 156 cr

Private-sector lender Yes Bank on Wednesday posted a 56 per cent rise in net profit during the April-June quarter, helped by higher credit growth that pushed up interest income for the bank.

Net profit for the quarter rose to Rs 156 crore, from Rs 100 crore a year ago, beating a Reuters poll estimate of Rs 144 crore.

"(Profit growth) is on the back of strong credit growth of 107.2 percent year-on-year and steady margins with net interest margins stable at 3.1 percent," Rana Kapoor, managing director and chief executive officer, said in a note.

The bank's loan growth more than doubled to Rs 26,250 crore while its net interest income rose 67 per cent to Rs 262 crore due to an exponential growth in advances and investments.

"It's a pretty decent set of numbers. The credit growth came mainly from the 3G auctions as banks have provided loans to the telecom firms," said an analyst with a Mumbai-based brokerage.

"The loan growth is surprising and positive," he added.

Its non-interest income comprising transaction banking, financial advisory and third party distribution of products rose 30 per cent to Rs 144 crore.

The bank, which has received 91 new branch licences, plans to open 100 new branches within the next 12 months, Kapoor said.

At 2.08 pm, shares of the bank were up 2.12 per cent at Rs 303.55 in a firm Mumbai market.