YES Bank posted a 30 per cent jump in net profit at ₹483 crore for the second quarter ended September 30 on the back of robust growth in loans and interest income. Lower provisions during the quarter also aided the profit growth.

Net interest income (difference between interest income and interest expended) soared 27 per cent to ₹856 crore. On the other hand, non-interest income increased by a moderate 13 per cent to ₹506 crore from ₹446 crore in Q2 FY14, limited by lower treasury fee income.

The bank’s provisions declined 33 per cent to ₹120 crore from ₹179 crore a year ago.

“Asset quality is under control. However, the environment is still evolving and some cyclical improvement in policy is needed... In the power and mining sector, there is need for more policy action,” said Jaideep Iyer, Senior President – Financial Markets, YES Bank.

As on September 30, advances were up 30 per cent driven by growth in working capital corporate loans, while deposits grew 19 per cent on the back of healthy retail deposit growth.

The loan book is likely to grow at around 25 per cent for the full year, Iyer added. Further, the bank has forayed into the home loan segment and hopes to see a rise in retail base. The retail (including SME) and corporate loan mix at YES Bank is 35:65.

The net interest margin expanded to 3.2 per cent from 2.9 per cent, driven by healthy growth in retail deposits and capital-raising.

Gross non-performing assets (NPAs) were up at 0.36 per cent (₹222 crore) as on September 30, 2014, from 0.28 per cent (₹132 crore) a year ago. Net NPAs also increased to ₹54 crore from ₹19 crore. The board approved appointment of Radha Singh as part-time chairperson of the Bank for a period of two years.

YES Bank shares ended at ₹662.70 apiece, 3.79 per cent higher than its previous close on the BSE.

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