YES Bank Q4 net up 34%

Led by a robust growth in non-interest income, private sector lender YES Bank on Wednesday reported a 33.6 per cent jump in net profit for the quarter ended March 31, 2012, to Rs 271.8 crore.

Its non-interest income grew 42.6 per cent, to Rs 266.4 crore, compared with Rs 186.8 crore in the same period a year ago. In the same period last year, the lender had reported a net profit of Rs 203.4 crore. “The bank has achieved sustained profit growth of 34.4 per cent on the back of steady NII growth, and a continued focus on revenue diversity, leading to strong non-interest income growth,” said Rana Kapoor, managing director & chief executive officer, YES Bank. Net interest income grew 28.6 per cent to Rs 448.2 crore, whereas total income of the bank stood at Rs 714.6 crore, up 33.5 per cent compared with the corresponding quarter a year ago.

The bank maintained its net interest margins at 2.8 per cent while the capital adequacy ratio stood at 17.9 per cent. However, advances grew by 10.5 per cent and deposits were higher by seven per cent during 2011-12.

“This year has been tough and hence, we consolidated our balance sheet so that we are well positioned to capitalise on the improvements in the macro-economic environment. In the current financial year, we would be growing our advances by at least 17 per cent, as projected by the Reserve Bank of India in its annual monetary policy,” Kapoor said.

The bank’s loan loss coverage ratio was at 341 per cent, and specific provisioning cover was at 79.2 per cent as at March 31. Total restructured advances was at 0.53 per cent of gross advances as at March 31, 2012, and gross NPA came down to 0.22 per cent from 0.23 per cent a year ago.

For the year ended March 31, 2012, YES Bank has posted a growth of 34.25 per cent in net profit of Rs 976 crore, against Rs 727 crore for the year ended March 31, 2011.

YES Bank is planning to raise about Rs 2,627 crore as core Tier-I capital in the current financial year to fund its growth plans. “Last year, we tried to raise this money, but the market was not conducive. However, this year, when the markets improve we would be raising around $500 million,” Kapoor added.