Private sector lender Yes Bank's fourth quarter (January-March) net profit rose by forecast beating 33 percent year-on-year to about Rs 360 crore, driven by interest income and other income.
Private sector lender Yes Bank 's fourth quarter (January-March) net profit rose by forecast beating 33 percent year-on-year to about Rs 360 crore, driven by interest income and other income.
The net interest income or the difference between interest earned and paid out, increased a litte over 42 percent to Rs 638 crore during the same period. Net interest margin (NIM) remains unchanged at 3%. Other income increased more than 42 percent y-o-y to Rs 379 crore. Net profit rose almost at a similar pace of 33% y-o-y to Rs 1,300 crore for the year ending March 31, FY13.
"The bank has achieved robust growth in profits with healthy NII and non-interest income growth while maintaining asset quality despite a challenging economic environment. We are well positioned for FY2014 as we continue our balanced growth trajectory, supported by our differentiated product and services proposition and expanding retail footprint," Rana Kapoor, MD & CEO - Yes Bank said in release.
Analysts on an average had expected a rise of 29 percent in its net profit and NII at 39 percent for the quarter.
The bank's loans expanded nearly 24% y-o-y to about Rs 47,000 crore. Including the credit substitute - a form of indirect credit wherein the bank underwrites bond issues of rated companies, total book rose 31% to about Rs 60,300 crore.
During the three month period, the gross non-performing asset (NPA) ratio increased marginally to 0.20 percent as against against 0.17 percent in October-December quarter. However, net NPA ratio declined from 0.04 percent to 0.01 percent. This means, the bank made higher provisions. Net NPAs are derived at after deducting provisions from gross NPAs.
"The bank has increased its specific provisioning cover to 92.60% as at March 31, 2013 and has further added to the counter cyclical provisions during the quarter," the bank said in the release.
Provisions increased significantly to about Rs 98 crore from Rs 57 crore a quarter back.
On deposit front, Yes Bank recorded more than 36% growth in its total deposits at Rs 67,000 crore. The share of current and savings account (CASA) rose close to 19% compared with 15% a year back. The bank is offering 6-7% in its savings deposits.
However, the sustainability of CASA growth needs to be seen in a falling interest rate regime expected in the coming days. CASA is traditionally a cheap source of funds for banks.
"The bank has incorporated a retail broking subsidiary and has hired key top management to roll out a retail broking platform. The retail brokerage will complement our current retail offerings and enable cross-selling of 3 in 1 accounts to our expanding base of retail customers," Kapoor said.
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