YES Bank profit rises 25% in Q2

Updated - January 08, 2018 at 11:46 PM.

Net interest income grows 33.5% to ₹1,885 crore

RANA KAPOOR, MD & CEO, YES Bank

YES Bank reported a 25 per cent year-on-year increase in second quarter net profit even as huge divergence in asset classification and provisioning, as assessed by the Reserve Bank of India, saw the lender lower its FY17 profit by ₹1,014 crore.

Net profit in the reporting quarter was at ₹1,003 crore against ₹802 crore in the year-ago quarter.

Net interest income (difference between interest earned and interest expended) was up 33.5 per cent year-on-year (y-o-y) at ₹1,885 crore in the reporting quarter.

The private sector bank said this was driven by steady growth in advances, current account, savings account (CASA), and expanding margins. Non-interest income increased 35.4 per cent to ₹1,248 crore. Net interest margin expanded to 3.7 per cent from 3.4 per cent in the year-ago quarter.

Retail advances robust

Rana Kapoor, Managing Director and CEO, YES Bank, said: “Retail banking advances have posted robust growth of 78 per cent y-o-y growth to 11.4 per cent (against 8.4 per cent in the year-ago quarter) of outstanding book.

“Sustained momentum in CASA accretion gives us the confidence to achieve our target CASA ratio of 40 per cent by September 2018, well ahead of our earlier target date of March 2020.

“Further, the bank’s asset quality continues to demonstrate resilience after duly incorporating full impact of the RBI’s RBS (risk-based supervision) observations for FY17.”

Advances grew by 35 per cent y-o-y to ₹1,48,675 crore. The bank said this came on the back of robust growth in both corporate and retail businesses. Total deposits grew by 23 per cent ₹1,57,990 crore.

Gross non-performing assets jumped to ₹2,720 crore as at September-end 2017 from ₹917 crore as at September-end 2016. Provisions towards bad loans shot up to ₹447 crore from ₹162 crore in the year-ago quarter.

Asset classification

Referring to the RBI’s risk-based supervision exercise for FY17, the bank said the central bank assessed its gross NPAs as of March-end 2017 at ₹8,374 crore against ₹2,019 crore reported by the bank.

The central bank has assessed the NPA provisioning for FY17 at ₹2,482 crore against ₹946 crore reported by the bank.

The adjusted (notional) net profit for FY17 after taking into account the divergence in provisioning is ₹2,316 crore against ₹3,330 crore reported by the bank.

Published on October 26, 2017 17:31