Yes Bank has announced its fourth quarter numbers for the year FY09. Its Q4 standalone net profit went up at Rs 80.1 crore versus Rs 64.5 crore (YoY). The company's standalone net interest income (NII) increased to Rs 155.2 crore from Rs 108.5 crore (YoY).
Commenting on the results, Rana Kapoor, MD and CEO, Yes Bank
, said higher provisions have been made to mitigate risk in the current environment. The bank's non-performing assets (NPAs) at current level were manageable, Kapoor added.Also read: Yes Bank Q4 standalone net profit up at Rs 80.1 cr Here is a verbatim transcript of the exclusive interview with Rana Kapoor on CNBC-TV18. Also watch the accompanying video.Q: Your net interest income growth has been very robust, what the market also spots is that your provisioning has also gone up quite substantially. Are you worried about the quality of some of your assets and is provisioning going to go up significantly over the next few quarters as well?
Overall profitability of the bank has increased by over 51% for the year as a whole. Our net interest income during this period has also gone up proportionately by almost 54.6%.
Overall provisioning as you can see, our gross NPA (Non Performing Asset) is only 0.68% and the net NPA is at 0.33%. We have an overall provisioning cover of almost 51.5% and overall gross provisioning cover of 144.9%. So given the backdrop of the economic environment under the circumstances, we believe on a relatively young NPA portfolio our provisioning as high as what we are maintaining is sufficient to mitigate present risk. We have reason to believe that the overall complexion of the credit market is actually improving. Last three months we have seen generally an improvement setting into the markets and we have a reason to believe that NPAs at this level are fairly manageable in the course of the new year. Continued on next page ...