YES Bank Q1 profit up 38% to Rs 216 cr

 Private sector Yes Bank today posted a 38.2% jump in net profit for the June quarter to Rs 216.1 crore on the back of a healthy growth in interest income and advances.

Its net profit for the corresponding April-June period last year had stood at Rs 156.4 crore.

"We are satisfied with the performance, especially considering the high interest rate environment," the bank's Founder, Managing Director and Chief Executive Rana Kapoor told reporters here.

He attributed the growth in profit to the 26.1% jump in advances for the quarter ended June 30, which is considered slack in banking circles and the almost 15% rise in fee income at Rs 165.3 crore.

Kapoor said the bank is targeting to achieve a 35% overall credit growth for FY'12.

The city-headquartered bank's net interest income was Rs 354.2 crore, up 35%.

It was able to maintain net interest margin at 2.8% during the quarter and Kapoor said the NIM will cross 3% by the end of FY'12, once there is a pause in the current phase of rate tightening by the Reserve Bank and the proportion of low-cost CASA (current and savings account) deposits improves through branch expansion.

Yes Bank's CASA ratio stood at 10.9% as on June 30, and overall deposits grew 44.1% during the reporting period.