Private sector lender YES Bank on Wednesday reported a 30.2% year-on-year increase in its net profit for the fourth quarter of the financial year 2016-17 to `914.1 crore, buoyed by strong growth in advances that offset a significant jump in provisioning during the period under review. Total net income for the bank grew 41.7% from the year-ago quarter to `2,897.1 crore, while net interest income — the difference between interest earned and interest expended — rose 32.1% to `1,639.7 crore, the lender announced in a press conference.
The bank saw a sharp increase in its non-performing assets (NPAs) and provisions during the quarter due to its exposure to a borrower from the cement industry. Gross NPAs rose to 1.52% during the March quarter, from 0.76% in the corresponding quarter last year, while net NPA rose to 0.81% from 0.29%. Provisions increased 66.1% to `309.7 crore. “On the divergence in the NPA, it is because of our exposure to a single borrower. We are certain of a significant recovery in the near-term,” said Rana Kapoor, managing director & CEO.
YES Bank’s net exposure to the above-mentioned borrower is `683.6 crore, which is 0.52% of their net advances. Specific provision held in this account is `227.9 crore, it said in a post-earnings statement. For the remaining accounts, the bank has a provision coverage ratio if 64.9%.
Total advances grew by 34.7% year-on-year to `1.3 lakh crore as of March 31, 2017. Corporate banking accounted for 67.7% of the advances portfolio, while retail and business banking constituted 32.3%.
Total deposits grew by 27.9% year-on-year to `1.4 lakh crore. Current and savings account (CASA) deposits grew by 65.5% year-on-year to `51,869.7 crore, increasing the CASA ratio to 36.3% as on March 31. The bank’s credit deposit ratio stood at 92.6%. At its board meeting held on Wednesday, the bank decided to raise funds of up to `20,000 crore through issuance of debt securities on a private placement basis, reports PTI.
“The board of directors has approved raising of funds by way of issuance of debt securities including but not limited to non-convertible debentures, medium term notes, bonds up to `20,000 crore (in Indian rupees or foreign currency) to eligible investors on private placement, subject to approval of the shareholders,” YES Bank said.