Benefiting from a fall in provisions and an improvement in net interest income, private sector lender YES Bank on Thursday reported a 31% year-on-year rise in its net profit for the December quarter to R882.63 crore.The lender’s total income for the quarter came in at R4,231.61 crore, more than 25% higher compared with the same quarter last year. Net interest income, the difference between interest earned and interest expended, rose by over 30% to R1,507.50 crore.
As a result, the net interest margin (NIM) expanded by 10 basis points on a year-on-year basis, while sequentially, it remained unchanged. Non-interest income rose 34% to R998.30 crore, primarily on the back of a surge in treasury revenue.
As on December 31, the bank’s total deposits stood at R1.32 lakh crore, a rise of close to 31% from the end of the same quarter last year. Total advances grew 39% to R1.17 lakh crore, while CASA (current account and savings account) deposits increased by around 63% to R44,126.40 crore.
“YES Bank continues to garner low-cost deposits at a healthy pace on the back of its superior service and technology-driven experience, with the CASA ratio increasing to 33.3% as on December 31. The bank’s comprehensive product offerings continue to enable a healthy and granular advances growth of 38.7% y-o-y,” Rana Kapoor, managing director and chief executive officer, said in a post-results statement.
However, the quarter also saw the lender reporting a slight deterioration in its asset quality, with gross NPAs rising to R1,005.85 crore from R558.57 at the end of December last year. As a percentage of total loans, gross NPAs rose to 0.85%, against 0.66% last year, while net NPAs grew to 0.29% from 0.22%.
However, sequentially, the percentage of gross NPAs increased by only 2 basis points, while the percentage of net NPA remained unchanged. Therefore, the bank’s provisions fell 22% year-on-year to R115.38 crore and 29% quarter-on-quarter.