YES Bank hits record high as Q1 profit beats forecast

The stock rallied 6% to Rs 1,717 on BSE on back of heavy volumes.

YES Bank moved higher to its record high of Rs 1,717, up 6% on BSE after the bank reported a better than expected year on year (Y-o-Y) jump of 32% in net profit at Rs 966 crore in the June quarter (Q1FY18). The bank had reported Rs 732 crore net profit in the same quarter an year ago.

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.