Private sector lender YES bank on Thursday posted a 30% y-o-y growth in net profit to Rs 482.50 crore in the quarter ended September 30, on the back of robust growth in net interest income.
YES Bank registered a 27.4% y-o-y growth in net interest income (NII), which stood at R856.40 crore, compared to R672.10 crore in the year-ago period. NII is the difference between interest earned and paid by a bank. The bank maintained a net interest margin of 3.2% —
20 bps more than the same quarter of FY14.
Rajat Monga, CFO of YES Bank, said: “Growth in net profit is ably supported by a reasonably strong NII growth on the back of growth in advances and non-interest income. We have also seen expansion of margins.”
The bank posted a 13.3% rise in non-interest income, which stood at R505.6 crore. YES bank also had a 14.6% y-o-y increase in operating profit, which was R817.1 crore.
Advances grew 30% y-o-y to R62,029.6 crore, while total deposits rose 16% for the same period to R80,130.9 crore. Gross non-performing assets (NPAs) increased 8 bps y-o-y to 0.36% of the total advances, which was R222.4 crore, and the net NPA stood at 0.09%. “Asset quality is under control. But, the environment is still evolving. It is now in favour of improvement. It will take some policy measures and cyclical improvement in the economy before asset quality improves,” said Monga. Total restructured advances (excluding NPAs) stood at R116.3 crore on September 30. This represents 0.19% of the gross advances, down from 0.26% (R125.5 crore) on September 30, 2013.