Aided by a healthy rise in core interest income, mid-sized private sector lender Yes Bank today reported a 31.3 per cent increase in its September quarter net at Rs 801.5 crore.
The city-headquartered bank had reported a post tax profit of Rs 610.4 crore for the July-September period last year.
Core net interest income grew 30.5 per cent to Rs 1,446.2 crore, mostly on a 37.7 per cent growth in advances, while the non interest income was up 43.6 per cent to Rs 887.9 crore.
Despite the growth in the share of the low cost Current and Saving Account Deposits to over 30 per cent of the total base, the bank maintained its net interest margin at 3.4 per cent.
Managing director and chief executive Rana Kapoor attributed this to the growing foreign currency lending book, where the margins are lower.
The book stands at USD 750 million or 3.5 per cent of overall advances at present.
Its gross non performing assets ratio increased 0.83 per cent, as against 0.61 per cent in the year-ago period, while the provisions moved up to Rs 161.7 crore as against Rs 103.9 crore last year.
Kapoor today streamlined its guidance on the credit costs front to under 0.60 per cent from the earlier 0.50 to 0.70 per cent.
It witnessed fresh slippages of Rs 72 crore, while there were no new addition to the restructured assets book which came down to Rs 511 crore.
He said the bank is cautious on the EPC players in mid-corporate segment. The share of this segment in the loan book has come down to over 10 per cent from the earlier 13 per cent.
Its cost to income ratio came down to 40 despite the high investment phase that it is in. Kapoor said it can move further south to 38 per cent over the medium-term.
The bank scrip gained 1.31 per cent to close at Rs 1,308.80 apiece on the BSE, as against 0.52 per cent gains in the benchmark.
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