Yes Bank on Thursday reported a 26.5% rise in its second quarter net profit at R610.40 crore compared to the corresponding period last year.
Net interest income (NII) — the difference between interest earned and interest expended — saw a jump of 29.4% on a year-on-year basis at Rs 1,108.50 crore.
Net interest margins (NIMs) rose 10 basis points to 3.3% compared to the second quarter last year. On a sequential basis, NIMs remained flat.
“A significant part of these earnings can be attributed to the overall improvement in net interest income, which year-on-year has improved by 29.4%,” said Rana Kapoor, MD & CEO.
Asset quality weakened with the gross non-performing assets as a percentage of gross advances seeing a rise of 25 basis points to 0.61% in the second quarter this year compared to the same period last year. On a sequential basis, gross NPAs rose by 15 basis points.
Net NPAs also saw a rise by 11 basis points in the second quarter to 0.2% compared to the second quarter of FY15, while on a sequential basis, it rose by 7 basis points. The bank said net NPAs increased by R51.9 crore.
“There has been no sale to ARC during the previous four quarters. Also, the bank has not refinanced any loan through 5-25 route,” the press release said.
Yes bank has also put out its sensitive sector disclosures. The lender has an exposure of 9.80% to electricity sector, 3.80% in iron and steel segment, 6.30% in EPC and 6.4% in commercial real estate, according to the press release.
The bank has no exposure to state electricity boards.
Total advances grew 29% to Rs 80,015.10 crore as on September 30, 2015, the bank said in a release, adding that corporate banking accounted for 68.2% of the advances portfolio while retail and business banking constituted 31.8%. Total deposits grew 24% to Rs 99,344.30 crore as on September 30, 2015. Current and savings account (Casa) deposits grew 40.5% y-o-y to Rs 25,318.30 crore, taking the Casa ratio to 25.5% as on September 30, up from 22.5% as at September 30, 2014, the release said.
The Yes Bank scrip closed 1.95% higher at Rs 743.50 on BSE.