YES Bank Q1 net profit up 34%

Private sector lender YES Bank said its net profit for the quarter ended June 30 grew 34.3 per cent year-on-year to Rs 290 crore, on the back of healthy growth in non-interest income. The bank’s non-interest income surged 74 per cent to Rs 288 crore during the period. Net interest income, or the difference between interest earned and interest expended, expanded 33.3 per cent to Rs 472 crore. Net interest margin remained stable at 2.8 per cent.

Asset quality of the bank deteriorated a tad with both gross and net non-performing asset ratios increasing marginally.

Gross non-performing asset ratio was 0.28 per cent, while net bad loan ratio was 0.06 per cent at the end of June.

 

Advances grew 16.4 per cent to Rs 38,534 crore. Deposits were up 15 per cent at Rs 50,208 crore.

The private lender is one of the few banks that have increased interest rate on savings deposits after the rate was deregulated towards the end of 2011. The bank claimed the move has helped in strengthening its low-cost deposit base.

“We have added saving deposits worth Rs 500 crore this quarter and plan to take our CASA (current account, savings account) ratio to 20 per cent by the end of this fiscal,” Rana Kapoor, managing director and chief executive of the bank, said in his post-earnings comments. Share of CASA deposits was 16.3 per cent of total deposits at the end of the quarter.

YES Bank closed the quarter with a capital adequacy ratio of 16.5 per cent.