YES Bank Q1 net rises 38.3% to Rs 401 cr on other income
YES Bank's oher income jumped 53.47 percent year-on-year (16.5 percent Q-o-Q) to Rs 442 crore in first quarter while net interest margin was unchanged at 3 percent Q-o-Q, but improved by 20 bps Y-o-Y.
July 24, 2013 / 23:01 IST
Moneycontrol Bureau
Private sector lender Yes Bank's first quarter (April-June) net profit rose to a forecast beating 38 percent year-on-year to Rs 401 crore, aided by robust growth in net interest income (NII) and other income.During the quarter NII or the different between interest earned and paid out, increased 40 percent to about Rs 660 crore. Other income shot up more than 53 percent y-o-y to Rs 442 crore. Earnings were a little better-than-expectations. Analysts on an average had expected the bank to report net profit at Rs 382 crore and NII at Rs 658 crore.Must read: Yes Bank files replies to Madhu Kapur’s amended petitionNet interest margin remained unchanged at 3 percent quarter-on-quarter but it improved by 20 bps y-o-y. Other income includes non-fund based income such as commission earned from guarantees/letters of credit, financial advisory fees, selling of third party products, earnings from foreign exchange transactions, and profit/loss from sale of securities, the bank said in a release sent to the exchanges.The bank expanded its loans by 24 percent y-o-y to around 48,000 crore. Including the credit substitute - a form of indirect credit wherein the bank underwrites bond issues of rated companies, total book grew at a similar pace to Rs 61,240 crore.
During the three-month period the gross non-performing assets (NPA) fell marginally by 4 percent y-o-y to Rs 105 crore. Net NPAs dropped sharply by 49 percent y-o-y to Rs 12 crore as on June 30, 2013-14. However, Provisions and contingencies soared over 3 times year-on-year to Rs 97 crore. The reason behind the rise in provisions is not clear particularly when the credit quality improved. The bank press release did not mention about it."It may be due to rise in slippages. However, the break-up of provisisons and contingencies needs to be examined," a banking analyst said briefly. On deposit front, Yes Bank managed to mobilise good amount of public deposits, which grew 30 percent y-o-y to Rs 65,250 crore. However, the above normal growth came on a lower base. The share of current and savings account (CASA) deposits improved to 20.20 percent from 16.30 percent a year ago. CASA, the cheap source of money wherein the bank pays 0-7 percent rate of interest, grew more than 61 percent to 13,163 crore. "The bank has continued the strong traction on CASA and retail deposits with its CASA ratiocrossing 20 percent for the first time since inception," Rana Kapoor, MD & CEO, Yes Bank said in a press release. "Improved productivity, a wider and deeper branch network and continued focus on customised product offerings, have led to further growth of retail customers. Incremental branch expansion is an organisational imperative to further strengthen our retail offerings."Total restructured advances (excluding NPA) stood at Rs 139.5 crore as on June 30, 2013 as against Rs 196.5 crore in corresponding quarter of last fiscal.Yes Bank shares tanked nearly 13 percent to close at Rs 381 on NSE after the RBI announced additional measures to curb rupee volatility.saikat.das@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
