Private sector lender Yes Bank today stunned the markets with a hefty 58 per cent rise in net profit at over Rs 176 crore for the quarter to September on the back of robust growth in net interest income.
The city-based lender also reported a 57 per cent growth in its profit for the first half at Rs 332.6 crore.
"Yes Bank has once again delivered a robust financial performance with record profit of Rs 176.3 crore. This has been achieved on the back of sustainable net interest income growth of 77.9 per cent and growth in advances of 86.3 per cent year-on-year," bank founder, MD and CEO Rana Kapoor said.
The bank also improved its gross as well as net NPA levels in Q2 with gross NPA coming down to 0.22 per cent of its gross advances against 0.31 per cent in September 2009.
Net NPA declined to 0.06 per cent of its net advances against 0.08 per cent in Q2 FY10. Similarly, there was a slight improvement in specific provisioning cover to 74.7 per cent this quarter against 74.9 per cent in Q2 of FY10.
The CASA (current and savings accounts) deposits grew by a massive 118.9 per cent to Rs 4,052.8 crore taking the CASA ratio to 10.1 per cent during the quarter, while its total assets grew by 96.4 per cent to Rs 51,796.3 crore up from Rs 26,370.1 crore, Kapoor said.
Kapoor said the bank added 20 branches in Q2 taking total number to 171 as of end September. He further said the bank has permission to open 91 more branches and hopes to take the number of branch network to 250 by next June. He also said the bank would be launching more services, including credit cards within the next six months.
Kapoor said bulk (69.8 per cent)of his business still depends on corporate and institutional banking, followed by commercial banking at 19.6 and branch banking at 10.6 per cent, respectively.
The bank successfully raised over Rs 1,170 crore through upper (Rs 640 crore) and lower tier II (Rs 306 crore), and tier I perpetual bonds (Rs 225 crore) in Q2. "This capital raising is in line with our objective to further propel retail/SME/commercial banking, and further accelerate building our CASA and fixed deposits granularity," Kapoor said.
The bank saw its loan growth rising 86.3 per cent, and deposits 106.6 per cent in Q2, while its total assets nearly doubled (96.4 per cent) to Rs 51,796.3 crore, group president-financial markets and CFO Rajat Monga said.
Net profit of the six-year-old bank rose by 57.8 per cent to Rs 176.3 crore against Rs 111.7 crore in the year-ago quarter, while its net interest income shot up by a healthier 77.9 per cent to Rs 313.2 crore against Rs 176 crore, Monga said, adding however the bank saw a marginal dip in its non-interest income to Rs 131 crore against Rs 135.5 crore.
Significantly, the bank also saw its net interest margin coming down by a tad to 3 per cent from 3.1 per cent. However, cost to income ratio improved to 36.6 from 38.4 per cent, its financial management president Jaideep Iyer said.
On an H1 basis, net profit rose 57.1 per cent to Rs 332.6 crore against Rs 211.8 crore, net interest income jumped 72.8 per cent to Rs 575.3 crore against Rs 332.9 crore in H1 FY10, while non-interest income came down to Rs 274.8 crore from Rs 287.6 crore.
Its Q2 advances rose 86.3 per cent to Rs 30,348.1 crore, while deposits soared 106.6 per cent to Rs 40,013.7 crore. The lender also saw its CAR rising to 19.4 per cent in Q2 from shooting past 11 per cent in Q2 FY10.
