Yes Bank has reported a 33.3% y-o-y increase in net profits for the three months to September to R235 crore. Profits rose despite higher provisioning, which more than doubled to R37.9 crore. Shares of Yes Bank fell1.79% to close at R284.8 on the Bombay Stock Exchange (BSE), underperforming the benchmark Sensex, which declined 0.87%.Yes Bank’s asset quality deteriorated very slightly, as net non-performing assets (NPA) rose 3 basis points sequentially to 0.04%. The bank’s NPA provisioning cover fell sharply to 80.2% from 95.2% levels at the end of June 2011 quarter.
Net interest income (NII) rose 23.1% to R385 crore, with a slight improvement in net interest margins (NIM), while the bank’s fee income rose 63.4% at R214 crore, on the back of strong growth in transaction banking and financial markets, the bank said in a release. From 2.8% in the past three quarters, NIMs rose 10 basis points sequentially to 2.9% during September 2011 quarter.
The bank’s total advances went up 12.7% year-on-year to R34,194 crore, while deposits grew 10.2% to R44,075.9 crore. Both advances and deposits grew at a slower pace of just 3.3% and 1.1% on a quarter-on-quarter basis. ?The bank’s strategy in the last two quarters has been to concentrate on value versus volume. Some of the bulky loans and deposits have been rationalised,? said Rana Kapoor, the bank?s MD & CEO.
Yes Bank’s capital adequacy ratio (CAR) stood at 16% of which tier-1 capital was at 9.4%. During the quarter, the bank raised R321.5 crore of lower tier-II capital. The lender said it had no plans to tap capital at least in the next one year.